The Investor's Map To Riyadh Retail Properties

Riyadh's retail real estate market is a lively and developing landscape, offering a myriad of opportunities for savvy financiers. Based on the comprehensive benchmarking report, here are some crucial 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 massive 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 diversity deals with a broad spectrum of customer requirements and choices.
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 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 customer costs practices. 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 noted for their high standards and quality occupants. This element is essential as it affects foot traffic, tenant retention, and general residential or commercial property value.
Catchment Areas

Catchment areas are a critical aspect of retail realty, especially for malls, as they straight influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these areas is important for investors.

Here's what the report exposes about catchment areas:

- Definition and Importance: A catchment location is the geographic area from which a mall or retail center draws its clients. It's substantial due to the fact that it impacts foot traffic, sales potential, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment location covering an amazing 40.5% of Riyadh's population. This high portion suggests its considerable effect 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 protection demonstrates its significance as a retail location.
- 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 total population. This indicates a strong devoted client base that predominantly 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 property market, comprehending lease rates and tenancy patterns is vital for making informed investment choices.

- Granada Center Mall: As of August 2022, this shopping center, being among the biggest in Riyadh, reveals an occupancy rate of 64%. It is essential to keep in mind that some parts of the shopping center were under remodelling at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping mall, presently the largest in regards to Gross Leasable Area, has an outstanding 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 mall stands as another key player in the market, reflecting a strong and steady 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 two per year aren't attended to each shopping center, the report suggests that all the shopping centers consisted of follow a similar prices structure. This harmony recommends a market requirement, which can be a crucial element for investors when evaluating the potential roi.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large mall in Riyadh. The tenancy is really 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 an effective retail investment in Riyadh's dynamic market. Here's an in-depth take a look at its characteristics, 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 strategically situated. It boasts a land area of 139,118 m TWO, using sufficient area for a varied variety of retail and entertainment alternatives.
- Size and Structure: The shopping center encompasses a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This substantial size is distributed across 3 floors, offering a vast variety of renting alternatives.
- Leasable Area Distribution: The leasable location is divided as follows:.

First Floor: 38,499 m ²
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m ²
. -This distribution permits a different mix of retail, dining, and home entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor stores, further improving its appeal. The diversity in its tenant mix accommodates a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the shopping mall had a high tenancy rate of 91.2%. This is indicative of its popularity amongst merchants and customers alike, recommending a stable stream of foot traffic and constant revenue generation.
- Investment Appeal: Given its tactical location, large GLA, varied occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success aspects function as a guide for what investors should 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".
- "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 destination in Riyadh, provides valuable insights into the city's retail real estate 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, tactically positioned to bring in a broad customer base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is among the largest in Riyadh. It has an overall built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The mall's extensive leasable location is attentively distributed over two floors, improving 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 occupants, consisting of regional and worldwide brand names, which accommodates a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under remodelling, the mall kept a 64% tenancy rate as of August 2022. This figure is likely to enhance post-renovation, making it an attractive possibility for future development.
- Investment Potential: Granada Center Mall's size, location, and renter mix position it as a strong contender in Riyadh's retail market. Its big GLA and restoration strategies signal potential for worth appreciation, making it an enticing 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 ² ".-" 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
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Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, provides itself as an intriguing case study for investors. Here's an in-depth 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 upscale location of Riyadh.
- Substantial Size and Offering: The shopping mall covers an acreage of 238,769 m ² with an overall built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size helps with a varied variety 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 ²- This distribution accommodates different retail and leisure experiences, interesting a large consumer base.
Tenant Diversity: Al Nakheel Mall's tenant mix consists of a variety of local and international brands, bring in a diverse group of shoppers and guaranteeing stable step.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported an occupancy rate of 82.0%. This reasonably high occupancy rate, combined with its size and place, marks Al Nakheel Mall as a promising investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall belongs to the Arabian Center Group, including to its reliability and appeal. Its big GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.