The Investor's Map To Riyadh Retail Properties

Riyadh's retail realty market is a dynamic and evolving landscape, offering a myriad of opportunities for smart investors. Based on the thorough benchmarking report, here are some essential characteristics forming 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 roughly 100,000 m TWO, to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity deals with a broad spectrum of customer needs and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area but are spread out throughout the city. This distribution permits for a different financial investment approach, 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 practices. This growth trajectory suggests an appealing future for retail financial investments in the area.
Quality and Standards: The selected residential or commercial properties for the research study are kept in mind for their high requirements and quality renters. This aspect is vital as it influences foot traffic, renter retention, and general residential or commercial property worth.
Catchment Areas

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

Here's what the report reveals about catchment locations:

- Definition and Importance: A catchment area is the geographical area from which a mall or retail center draws its customers. It's significant because it impacts foot traffic, sales capacity, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall sticks out with its catchment area covering an impressive 40.5% of Riyadh's population. This high portion indicates its substantial impact and reach within the city.
- Al Nakheel Mall: With a catchment area that includes 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its substantial coverage demonstrates its value as a retail destination.
- Riyadh Park Mall: This mall has a catchment that includes 32.1% of Riyadh's population, marking it as a major destination in the city's retail sector.
- Captive Population: Looking much deeper into the numbers, Granada Center Mall has the highest share of a captive population, amounting to 23.8% of Riyadh's overall population. This indicates a strong loyal consumer 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% 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 genuine estate market, understanding lease rates and tenancy patterns is vital for making educated investment choices.

- Granada Center Mall: Since August 2022, this mall, being among the largest in Riyadh, shows an occupancy rate of 64%. It is essential to keep in mind that some parts of the shopping mall were under renovation at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, currently the largest in regards to Gross Leasable Area, has an outstanding occupancy rate of 91.2%, indicating high renter retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another crucial gamer in the market, reflecting 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 offered each mall, the report indicates that all the shopping centers consisted of follow a similar rates structure. This uniformity suggests a market requirement, which can be a critical aspect for financiers when evaluating the potential return on investment.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest shopping mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping mall in Riyadh. The tenancy is excellent 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 an effective retail investment in Riyadh's busy market. Here's an in-depth look at its characteristics, 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, using adequate area for a varied series of retail and entertainment options.
- Size and Structure: The shopping center encompasses an overall built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This substantial size is dispersed throughout 3 floorings, offering a large range of leasing options.
- 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 enables a varied mix of retail, dining, and entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor shops, even more improving its appeal. The variety in its occupant mix caters to a broad spectrum of customer preferences.
- Occupancy Rates: As of August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its appeal amongst sellers and customers alike, recommending a consistent stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its tactical area, sizable GLA, diverse renter mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success elements act as a guide for what investors need to try to find 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".
- "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 popular retail location in Riyadh, uses important insights into the city's retail property market. Let's check out why it stands as a substantial case research study for possible financiers:

- Prime Location: The mall is located in Dammam, Ash Shohda, Ar Rawdah, strategically placed to attract a wide consumer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is one of the largest in Riyadh. It has a total built-up location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's extensive leasable area is attentively distributed over two floors, boosting 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 variety of renters, consisting of local and worldwide brand names, which deals with a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under remodelling, the shopping center maintained a 64% tenancy rate since August 2022. This figure is most likely to improve post-renovation, making it an attractive possibility for future growth.
- Investment Potential: Granada Center Mall's size, location, and renter mix position it as a strong competitor in Riyadh's retail market. Its big GLA and remodelling plans signal potential for value appreciation, making it an appealing alternative for investors.
Quotation from the Report:

- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 421,330 m ² ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m ² ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under renovation)".
Case Study 3: Al Nakheel Mall

Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, emerges as an intriguing case research study for financiers. Here's a detailed expedition of its features:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center take advantage of its position in a populous and upscale area of Riyadh.
- Substantial Size and Offering: The shopping center covers a land location of 238,769 m ² with an overall built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This comprehensive size assists in a varied series of retail and leisure offerings.
- Leasable Area Distribution Across Floors:.
Second Floor: 20,767 m TWO
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m TWO- This distribution deals with various retail and leisure experiences, interesting a wide customer base.
Tenant Diversity: Al Nakheel Mall's occupant mix includes a series of regional and global brand names, in a diverse group of shoppers and guaranteeing steady tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This reasonably high occupancy rate, integrated with its size and location, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The shopping center belongs to the Arabian Center Group, contributing to its trustworthiness and appeal. Its large GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
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