The Investor's Map To Riyadh Retail Properties

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Riyadh's retail real estate market is a dynamic and developing landscape, providing a wide variety of opportunities for savvy investors. Based on the thorough benchmarking report, here are some essential characteristics forming this market:
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Diversity in Residential Or Commercial Property Sizes: The market 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 sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety deals with a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread out across the city. This circulation enables a diverse financial investment technique, targeting various demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in customer spending habits. This growth trajectory recommends an appealing future for retail investments in the region.
Quality and Standards: The picked residential or commercial properties for the research study are kept in mind for their high standards and quality occupants. This aspect is important as it influences foot traffic, renter retention, and total residential or commercial property worth.
Catchment Areas

Catchment areas are a critical element of retail genuine estate, especially for shopping centers, as they directly affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is vital for investors.

Here's what the report reveals about catchment areas:

- Definition and Importance: A catchment area is the geographic location from which a shopping center or retail center draws its consumers. It's considerable since it affects foot traffic, sales potential, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment location covering an impressive 40.5% of Riyadh's population. This high portion suggests its significant effect and reach within the city.
- Al Nakheel Mall: With a catchment location that includes 35% of the city's population, Al Nakheel Mall is another essential gamer in Riyadh's retail landscape. Its considerable protection shows its significance 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 major attraction in the city's retail sector.
- Captive Population: Looking much 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 shows a strong devoted client base that predominantly frequents this 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 highest 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 tenancy trends is vital for making informed investment decisions.

- Granada Center Mall: Since August 2022, this shopping center, being one of the largest in Riyadh, reveals an occupancy rate of 64%. It's important to keep in mind that some parts of the shopping mall were under remodelling at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, presently the biggest in regards to Gross Leasable Area, has an excellent occupancy rate of 91.2%, indicating high occupant retention and consistent customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another key 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 an occupancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m ² per year aren't offered each shopping mall, the report shows that all the shopping malls included follow a similar pricing structure. This uniformity recommends a market requirement, which can be an important aspect for investors when evaluating the prospective 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 a successful retail investment in Riyadh's busy market. Here's an in-depth appearance at its attributes, making it a noteworthy case 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 area of 139,118 m ², providing sufficient area for a diverse variety of retail and entertainment alternatives.
- Size and Structure: The shopping center includes an overall built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is distributed throughout 3 floors, offering a vast array of renting 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 distribution enables for a different mix of retail, dining, and home entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial variety of anchor stores, even more enhancing its appeal. The diversity in its renter mix accommodates a broad spectrum of consumer preferences.
- Occupancy Rates: As of August 2022, the mall had a high occupancy rate of 91.2%. This is indicative of its popularity among sellers and customers alike, suggesting a consistent stream of foot traffic and consistent earnings generation.
- Investment Appeal: Given its tactical place, sizable GLA, varied occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success elements serve as a guide for what investors need to search for in prospective retail residential or commercial property 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 destination in Riyadh, offers valuable insights into the city's retail realty market. Let's explore why it stands as a considerable case research study for possible financiers:

- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a broad consumer base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is one of the largest in Riyadh. It has a total built-up location of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The mall's extensive leasable area is attentively dispersed over two floors, 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 mall hosts a range of renters, consisting of local and worldwide brand names, which caters to a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under renovation, the shopping center maintained a 64% occupancy rate since August 2022. This figure is likely to improve post-renovation, making it an appealing prospect for future growth.
- Investment Potential: Granada Center Mall's size, area, and occupant mix position it as a strong contender in Riyadh's retail market. Its large GLA and restoration strategies signal capacity for value appreciation, making it an enticing alternative 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 ² ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under renovation)".
Case Study 3: Al Nakheel Mall

Al Nakheel Mall, a key retail residential or commercial property in Riyadh, emerges as an intriguing case study for investors. Here's an of its features:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center gain from its position in a populous and wealthy area of Riyadh.
- Substantial Size and Offering: The shopping center covers an acreage of 238,769 m two with an overall built-up area of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This comprehensive size assists in a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:.
Second Floor: 20,767 m TWO
. -First Floor: 58,463 m TWO
. Ground Floor: 2,091 m TWO- This circulation deals with various retail and leisure experiences, appealing to a wide customer base.
Tenant Diversity: Al Nakheel Mall's tenant mix includes a variety of regional and global brands, drawing in a varied group of shoppers and ensuring stable step.
- Occupancy and Investment Potential: Since August 2022, the shopping center reported a tenancy rate of 82.0%. This relatively high tenancy rate, combined with its size and location, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall belongs to the Arabian Center Group, adding to its credibility and appeal. Its large GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.