GitLab

Riyadh's retail real estate market is a dynamic and developing landscape, offering a wide variety of chances for smart financiers. Based upon the extensive benchmarking report, here are some crucial characteristics shaping this market:

Diversity in Residential Or Commercial Property Sizes: The market showcases a vast array of residential or commercial property sizes, from large-scale shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m ², to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety accommodates a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location however are spread out across the city. This circulation allows for a diverse investment approach, targeting different demographics and socio-economic segments.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in consumer costs routines. This growth trajectory suggests an appealing future for retail financial investments in the region.
Quality and Standards: The selected residential or commercial properties for the research study are kept in mind for their high standards and quality occupants. This aspect is vital as it affects foot traffic, tenant retention, and overall residential or commercial property worth.
Catchment Areas

Catchment areas are a crucial aspect of retail realty, especially for shopping malls, as they straight affect the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is vital for financiers.

Here's what the report reveals about catchment locations:

- Definition and Importance: A catchment area is the geographical area from which a shopping mall or retail center draws its clients. It's considerable because it impacts foot traffic, sales potential, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands apart with its catchment area covering an amazing 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 incorporates 35% of the city's population, Al Nakheel Mall is another key player in Riyadh's retail landscape. Its significant coverage demonstrates its value as a retail destination.
- Riyadh Park Mall: This shopping mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major attraction in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the highest share of a captive population, totaling up to 23.8% of Riyadh's total population. This indicates a strong devoted client base that mainly frequents this shopping center 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends

In the Riyadh retail genuine estate market, comprehending lease rates and occupancy trends is crucial for making informed investment choices.

- Granada Center Mall: Since August 2022, this shopping center, being one of the biggest in Riyadh, reveals a tenancy rate of 64%. It is very important to keep in mind that some parts of the shopping center were under restoration at the time, which may have affected this figure.
- Riyadh Park Mall: This shopping center, currently the biggest in terms of Gross Leasable Area, has an impressive occupancy rate of 91.2%, suggesting high renter retention and constant customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another essential player in the market, showing a strong and stable tenant base.
- Al Nakheel Mall: This residential or commercial property, essential to the Arabian Center Group, reported a tenancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While specific figures for lease rates per m two annually aren't attended to each shopping mall, the report indicates that all the shopping centers included follow a similar rates structure. This harmony recommends a market standard, which can be a crucial factor for investors when assessing the prospective roi.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another big mall in Riyadh. The occupancy is great at 93.3%." [Riyadh Gallery Mall]
- "A key 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 dynamic market. Here's an in-depth appearance at its qualities, making it a noteworthy case research study:

- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is tactically situated. It boasts an acreage of 139,118 m ², using ample space for a varied series of retail and home entertainment options.
- Size and Structure: The shopping mall includes an overall built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This substantial size is distributed across three floors, offering a huge array of renting 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 TWO

. -This distribution permits a diverse mix of retail, dining, and entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable number of anchor stores, further enhancing its appeal. The variety in its occupant 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 appeal amongst sellers and consumers alike, suggesting a constant stream of foot traffic and constant profits generation.
- Investment Appeal: Given its strategic area, sizable GLA, varied renter mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success aspects function as a guide for what investors should try to find 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".
- "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 popular retail location in Riyadh, provides important insights into the city's retail realty market. Let's explore why it stands as a considerable case study for prospective investors:

- Prime Location: The shopping mall is located in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to bring in a broad consumer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is among the biggest in Riyadh. It has an overall built-up area of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The shopping mall's extensive leasable location is thoughtfully dispersed over 2 floorings, improving the shopping experience. The floor-wise distribution is as follows:.
- First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping center hosts a range of tenants, consisting of local and global brands, which caters to a broad group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under renovation, the shopping center preserved a 64% occupancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an appealing prospect for future growth.
- Investment Potential: Granada Center Mall's size, location, and occupant mix position it as a strong contender in Riyadh's retail market. Its large GLA and signal capacity for value appreciation, making it an attractive option 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 TWO ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under renovation)".
Case Study 3: Al Nakheel Mall
forumcu.com
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an appealing case research study for financiers. Here's a comprehensive expedition of its functions:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall gain from its position in a populated and affluent location 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 ² and a Gross Leasable Area (GLA) of 81,322 m ². This substantial 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 TWO
. Ground Floor: 2,091 m ²- This distribution caters to various retail and leisure experiences, appealing to a wide consumer base.
- Tenant Diversity: Al Nakheel Mall's renter mix includes a series of regional and worldwide brands, attracting a diverse group of shoppers and guaranteeing constant step.
- Occupancy and Investment Potential: As of August 2022, the mall reported a tenancy rate of 82.0%. This relatively 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 mall is part of the Arabian Center Group, including to its trustworthiness and appeal. Its big GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.