The Investor's Map To Riyadh Retail Properties

airbnb.co.uk
Riyadh's retail genuine estate market is a dynamic and evolving landscape, offering a myriad of opportunities for smart investors. Based upon the thorough benchmarking report, here are some key dynamics forming this market:

Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a large range of residential or commercial property sizes, from large-scale shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of approximately 100,000 m ², to smaller sized retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity deals with a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area but are spread out throughout the city. This circulation permits for a diverse financial investment method, targeting various 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 customer spending practices. This growth trajectory suggests a promising future for retail investments in the area.
Quality and Standards: The chosen residential or commercial properties for the study are kept in mind for their high requirements and quality tenants. This element is essential as it affects foot traffic, occupant retention, and total residential or commercial property worth.
Catchment Areas

Catchment locations are a crucial element of retail genuine estate, particularly for shopping malls, as they directly affect 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 reveals about catchment areas:

- Definition and Importance: A catchment location is the geographical area from which a shopping mall or retail center draws its customers. It's substantial due to the fact that it affects foot traffic, sales potential, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands out with its catchment location covering an amazing 40.5% of Riyadh's population. This high percentage indicates its considerable impact and reach within the city.
- Al Nakheel Mall: With a catchment area that incorporates 35% of the city's population, Al Nakheel Mall is another essential gamer in Riyadh's retail landscape. Its substantial coverage shows its significance as a retail destination.
- Riyadh Park Mall: This mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major destination 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 primarily 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% protection."
- "The Granada Center Mall has the greatest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends

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

- Granada Center Mall: As of August 2022, this shopping center, being among the biggest in Riyadh, shows a tenancy rate of 64%. It is essential to keep in mind that some parts of the shopping mall were under renovation at the time, which might have affected this figure.
- Riyadh Park Mall: This mall, currently the biggest in regards to Gross Leasable Area, has an outstanding occupancy rate of 91.2%, suggesting high renter retention and constant customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another crucial gamer in the market, reflecting a strong and stable occupant 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 each year aren't offered each shopping center, the report indicates that all the malls included follow a comparable pricing structure. This harmony suggests a market standard, which can be a crucial aspect for investors when evaluating the potential roi.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping center in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The tenancy is excellent at 93.3%." [Riyadh Gallery Mall]
- "An essential 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 bustling 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 . It boasts a land area of 139,118 m ², offering adequate space for a diverse series of retail and entertainment choices.
- Size and Structure: The shopping mall encompasses an overall built-up area of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This substantial size is distributed throughout 3 floorings, offering a vast selection of leasing choices.
- Leasable Area Distribution: The leasable location is divided as follows:.

First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution enables 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 renter mix accommodates a broad spectrum of customer choices.
- Occupancy Rates: As of August 2022, the mall had a high tenancy rate of 91.2%. This is a sign of its popularity amongst merchants and consumers alike, suggesting a constant stream of foot traffic and constant revenue generation.
- Investment Appeal: Given its tactical place, substantial GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success elements serve 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 popular retail location in Riyadh, uses important insights into the city's retail property market. Let's check out why it stands as a significant case research study for possible financiers:

- Prime Location: The shopping mall is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to attract a large client base.
- Extensive Area: Covering a land location of 421,330 m TWO, Granada Center Mall is among the largest in Riyadh. It has a total built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping center's comprehensive leasable area is attentively distributed over 2 floorings, enhancing 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 mall hosts a range of tenants, consisting of local and global brand names, which deals with a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under remodelling, the mall kept a 64% tenancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an appealing possibility for future growth.
- Investment Potential: Granada Center Mall's size, place, and occupant mix position it as a strong contender in Riyadh's retail market. Its large GLA and remodelling strategies signal potential for value appreciation, making it an enticing choice for investors.
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 mall under renovation)".
Case Study 3: Al Nakheel Mall

Al Nakheel Mall, a key retail residential or commercial property in Riyadh, presents itself as an intriguing case study for investors. 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 mall gain from its position in a populated and upscale area of Riyadh.
- Substantial Size and Offering: The shopping center covers a land area of 238,769 m ² with a total built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m ². This substantial size helps with a varied series 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 ²- This distribution accommodates different retail and leisure experiences, attracting a wide customer base.
Tenant Diversity: Al Nakheel Mall's renter mix consists of a variety of regional and global brands, bring in a varied group of shoppers and ensuring stable step.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported a tenancy rate of 82.0%. This reasonably high occupancy rate, combined with its size and area, marks Al Nakheel Mall as a promising investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping center becomes part of the Arabian Center Group, including to its reliability and appeal. Its big GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.