The Investor's Map To Riyadh Retail Properties

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Riyadh's retail genuine estate market is a lively and evolving landscape, offering a huge selection of opportunities for savvy financiers. Based upon the comprehensive benchmarking report, here are some essential characteristics shaping this market:

Diversity in Residential Or Commercial Property Sizes: The market showcases a wide variety of residential or commercial property sizes, from large-scale shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m TWO, to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety accommodates a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread out throughout the city. This distribution permits a different financial investment method, targeting various demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in consumer spending routines. This growth trajectory suggests a promising future for retail financial investments in the region.
Quality and Standards: The picked residential or commercial properties for the study are kept in mind for their high standards and quality tenants. This aspect is crucial as it influences foot traffic, occupant retention, and total residential or commercial property value.
Catchment Areas

Catchment locations are a vital element of retail property, particularly for shopping centers, as they straight affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is essential for financiers.

Here's what the report reveals about catchment locations:

- Definition and Importance: A catchment area is the geographic location from which a shopping center or retail center draws its customers. It's substantial because it impacts foot traffic, sales potential, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment location covering an exceptional 40.5% of Riyadh's population. This high portion shows its significant effect 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 key player in Riyadh's retail landscape. Its significant protection demonstrates its value as a retail location.
- Riyadh Park Mall: This shopping center has a catchment that includes 32.1% of Riyadh's population, marking it as a significant 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 overall population. This indicates a strong faithful client base that mainly 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% protection."
- "The Granada Center Mall has the highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends

In the Riyadh retail realty market, comprehending lease rates and tenancy patterns is vital for making informed investment choices.

- Granada Center Mall: Since August 2022, this mall, being one of the biggest in Riyadh, reveals a tenancy rate of 64%. It is necessary to keep in mind that some parts of the shopping mall were under restoration at the time, which might have impacted this figure.
- Riyadh Park Mall: This mall, presently the largest in regards to Gross Leasable Area, has an outstanding tenancy rate of 91.2%, suggesting high occupant retention and consistent customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another crucial player in the market, showing a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, integral to the Arabian Center Group, reported an occupancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m two each year aren't attended to each shopping center, the report suggests that all the malls consisted of follow a comparable pricing structure. This uniformity recommends a market standard, which can be an important factor for investors when evaluating the prospective roi.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The occupancy is great at 93.3%." [Riyadh Gallery Mall]
- "A crucial 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 look at its qualities, making it a notable case research study:

- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is tactically located. It boasts a land location of 139,118 m ², offering adequate space for a varied variety of retail and entertainment options.
- Size and Structure: The shopping mall incorporates a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This significant size is dispersed across 3 floorings, offering a large array of leasing choices.
- Leasable Area Distribution: The leasable location is divided as follows:.

First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This circulation allows for a diverse mix of retail, dining, and entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor stores, even more enhancing its appeal. The diversity in its renter mix accommodates a broad spectrum of consumer choices.
- Occupancy Rates: As of August 2022, the mall had a high occupancy rate of 91.2%. This is indicative of its popularity amongst merchants and customers alike, suggesting a stable stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its strategic location, large GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success aspects act as a guide for what investors ought to look for in prospective 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".
- "Acreage: 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, offers important insights into the city's retail realty market. Let's explore why it stands as a significant case research study for prospective financiers:

- Prime Location: The shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to attract a wide client base.
- Extensive Area: Covering a land location of 421,330 m ², Granada Center Mall is one of the largest in Riyadh. It has an overall built-up location of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's substantial leasable location is thoughtfully dispersed over two floorings, boosting the shopping experience. The floor-wise circulation is as follows:.
First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping center hosts a variety of tenants, including local and global brand names, which accommodates a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under renovation, the mall preserved a 64% tenancy rate since August 2022. This figure is likely to enhance post-renovation, making it an appealing possibility for future development.
- 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 renovation 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".
- "Land Area: 421,330 m ² ".-" 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
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Al Nakheel Mall, an essential retail or commercial property in Riyadh, emerges as an appealing case study for financiers. Here's an in-depth exploration of its features:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall take advantage of its position in a populous and upscale area of Riyadh.
- Substantial Size and Offering: The mall covers a land location of 238,769 m two with an overall built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This comprehensive size assists in a varied variety 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 TWO- This circulation caters to different retail and leisure experiences, appealing to a large consumer base.
Tenant Diversity: Al Nakheel Mall's occupant mix includes a variety of local and worldwide brands, attracting a varied group of shoppers and guaranteeing stable step.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported a tenancy rate of 82.0%. This relatively high tenancy rate, combined with its size and place, marks Al Nakheel Mall as a promising financial investment chance in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, contributing to its trustworthiness and appeal. Its large GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.