The Investor's Map To Riyadh Retail Properties

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Riyadh's retail property market is a lively and developing landscape, using a huge selection of opportunities for . Based upon the detailed benchmarking report, here are some essential characteristics shaping this market:

Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety of residential or commercial property sizes, from large-scale malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m ², to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity deals with a broad spectrum of consumer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area however are spread out throughout the city. This distribution permits a different financial investment method, targeting different demographics and socio-economic segments.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in consumer costs routines. This development trajectory recommends an appealing future for retail financial investments in the area.
Quality and Standards: The chosen residential or commercial properties for the research study are kept in mind for their high requirements and quality renters. This aspect is important as it affects foot traffic, renter retention, and overall residential or commercial property value.
Catchment Areas

Catchment locations are a critical aspect of retail property, especially for shopping malls, as they directly affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is vital for financiers.

Here's what the report exposes about catchment areas:

- Definition and Importance: A catchment area is the geographical location from which a mall or retail center draws its customers. It's significant since it impacts foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands out with its catchment location covering an exceptional 40.5% of Riyadh's population. This high portion suggests its considerable impact and reach within the city.
- Al Nakheel Mall: With a catchment location that encompasses 35% of the city's population, Al Nakheel Mall is another essential player in Riyadh's retail landscape. Its substantial protection shows its value as a retail location.
- Riyadh Park Mall: This shopping center has a catchment that consists of 32.1% of Riyadh's population, marking it as a significant tourist attraction in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the greatest share of a captive population, totaling up to 23.8% of Riyadh's total population. This indicates a strong loyal client base that primarily frequents this shopping mall over others.
Quotation from the Report:

- "The Granada Center Mall covers 40.5% of the population."
- "Al Nakheel Mall covers 35% of the population followed by Riyadh Park Mall with 32.1% coverage."
- "The Granada Center Mall has the greatest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends

In the Riyadh retail property market, understanding lease rates and occupancy trends is important for making educated financial investment choices.

- Granada Center Mall: As of August 2022, this shopping center, being among the biggest in Riyadh, reveals a tenancy rate of 64%. It's important to note that some parts of the mall were under renovation at the time, which might have impacted this figure.
- Riyadh Park Mall: This shopping mall, presently the largest in regards to Gross Leasable Area, has an outstanding tenancy rate of 91.2%, showing high renter retention and consistent customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another essential player in the market, reflecting a strong and stable tenant base.
- Al Nakheel Mall: This residential or commercial property, important to the Arabian Center Group, reported a tenancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m two annually aren't offered each shopping mall, the report shows that all the malls included follow a comparable pricing structure. This uniformity suggests a market requirement, which can be a vital aspect for financiers when assessing the potential return on financial investment.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping center in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The tenancy is excellent at 93.3%." [Riyadh Gallery Mall]
- "An essential residential or commercial property for the Arabian Center Group (Al Hukair Group)." [Al Nakheel Mall]
Investment Opportunities: Case Studies

Case Study 1: Riyadh Park Mall

Riyadh Park Mall stands as a shining example of a successful retail financial investment in Riyadh's busy market. Here's a thorough take a look at its qualities, making it a notable case study:

- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is strategically located. It boasts an acreage of 139,118 m ², providing adequate space for a varied series of retail and entertainment options.
- Size and Structure: The mall encompasses an overall built-up area of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is dispersed across three floorings, offering a huge range of leasing options.
- Leasable Area Distribution: The leasable location is divided as follows:.

First Floor: 38,499 m ²
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This circulation permits for a different mix of retail, dining, and entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial variety of anchor shops, even more enhancing its appeal. The variety in its renter mix caters to a broad spectrum of customer preferences.
- Occupancy Rates: As of August 2022, the shopping center had a high occupancy rate of 91.2%. This is indicative of its appeal among sellers and customers alike, recommending a consistent stream of foot traffic and constant profits generation.
- Investment Appeal: Given its strategic area, large GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors work as a guide for what investors ought to look for in possible retail residential or commercial property financial investments in Riyadh.
Quotation from the Report:

- "Address: Parcel No 418, Riyadh Park Mall, Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal".
- "Land Area: 139,118 m2".
- "Total Built-up Area: 241,220 m2".
- "Gross Leasable Area: 105,290 m2".
- "Occupancy (Aug 2022): 91.2%".
Case Study 2: Granada Center Mall

Granada Center Mall, a prominent retail location in Riyadh, uses valuable insights into the city's retail realty market. Let's explore why it stands as a considerable case research study for prospective financiers:

- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a broad client base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is among the largest in Riyadh. It has a total built-up area of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The mall's comprehensive leasable location is thoughtfully distributed over two floorings, enhancing the shopping experience. The floor-wise distribution is as follows:.
First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping center hosts a range of tenants, consisting of local and international brand names, which caters to a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the mall kept a 64% tenancy rate since August 2022. This figure is likely to improve post-renovation, making it an attractive possibility for future growth.
- Investment Potential: Granada Center Mall's size, place, and renter mix position it as a strong contender in Riyadh's retail market. Its big GLA and remodelling strategies signal capacity for worth gratitude, making it an appealing option for financiers.
Quotation from the Report:

- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 421,330 m TWO ".-" Total Built-up Area: 318,064 m TWO ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the mall under restoration)".
Case Study 3: Al Nakheel Mall

Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, provides itself as an appealing case research study for financiers. Here's a comprehensive exploration of its functions:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center advantages from its position in a populated and upscale area of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land location of 238,769 m two with a total built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size assists in a diverse range of retail and leisure offerings.
- Leasable Area Distribution Across Floors:.
Second Floor: 20,767 m ²
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m ²- This circulation deals with various retail and leisure experiences, interesting a broad customer base.
Tenant Diversity: Al Nakheel Mall's occupant mix consists of a series of local and global brands, drawing in a varied group of buyers and ensuring steady step.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported an occupancy rate of 82.0%. This fairly high occupancy rate, combined with its size and area, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall is part of the Arabian Center Group, including to its trustworthiness and appeal. Its big GLA and diverse renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.