The Investor's Map To Riyadh Retail Properties

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Riyadh's retail realty market is a lively and progressing landscape, offering a variety of opportunities for smart investors. Based upon the thorough benchmarking report, here are some key characteristics shaping this market:

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 roughly 100,000 m TWO, to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety caters to a broad spectrum of customer needs and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area but are spread throughout the city. This distribution 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 practices. This development trajectory suggests an appealing future for retail 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 tenants. This element is crucial as it affects foot traffic, occupant retention, and general residential or commercial property value.
Catchment Areas
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Catchment locations are an important aspect of retail real estate, especially for malls, as they directly affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is necessary for financiers.

Here's what the report reveals about catchment areas:

- Definition and Importance: A catchment area is the geographic area from which a shopping center or retail center draws its consumers. It's significant since it impacts foot traffic, sales capacity, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment area covering an impressive 40.5% of Riyadh's population. This high portion shows its substantial effect and reach within the city.
- Al Nakheel Mall: With a catchment area that encompasses 35% of the city's population, Al Nakheel Mall is another essential player in Riyadh's retail landscape. Its significant coverage demonstrates its importance 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 tourist attraction 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 suggests a strong faithful client 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% coverage."
- "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 important for making informed investment choices.

Center Mall: As of August 2022, this shopping mall, being among the biggest in Riyadh, shows an occupancy rate of 64%. It's crucial to keep in mind that some parts of the mall were under remodelling at the time, which may have impacted this figure.
- Riyadh Park Mall: This mall, currently the largest in terms of Gross Leasable Area, has an impressive occupancy rate of 91.2%, showing high renter retention and consistent consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another key gamer in the market, reflecting a strong and steady renter 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 specific figures for lease rates per m ² per year aren't provided for each mall, the report suggests that all the shopping centers consisted of follow a similar prices structure. This uniformity suggests a market standard, which can be a critical element for investors when examining the possible return on investment.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping center in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The occupancy is 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 a successful retail investment in Riyadh's dynamic market. Here's an extensive appearance at its attributes, 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 tactically located. It boasts a land area of 139,118 m ², providing sufficient space for a diverse variety of retail and entertainment choices.
- Size and Structure: The mall encompasses an overall built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This significant size is distributed across 3 floors, offering a huge selection of leasing choices.
- Leasable Area Distribution: The leasable area is divided as follows:.

First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -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 substantial variety of anchor shops, further enhancing its appeal. The variety in its tenant mix accommodates a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its popularity amongst sellers and consumers alike, suggesting a constant stream of foot traffic and constant income generation.
- Investment Appeal: Given its strategic area, sizable GLA, diverse occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success factors act as a guide for what financiers ought to try to find in possible 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 prominent retail destination in Riyadh, provides valuable insights into the city's retail real estate market. Let's check out why it stands as a substantial case study for possible financiers:

- Prime Location: The mall is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to draw in a large client 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 area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The mall's comprehensive leasable location is attentively dispersed over two floorings, enhancing the shopping experience. The floor-wise circulation is as follows:.
First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The mall hosts a variety of renters, including local and worldwide brand names, which deals with a broad group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under restoration, the mall kept a 64% tenancy rate as of August 2022. This figure is most likely to enhance post-renovation, making it an attractive possibility for future development.
- Investment Potential: Granada Center Mall's size, area, and renter mix position it as a strong contender in Riyadh's retail market. Its big GLA and restoration strategies signal capacity for value gratitude, making it an appealing alternative for financiers.
Quotation from the Report:

- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Land Area: 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 mall under remodelling)".
Case Study 3: Al Nakheel Mall

Al Nakheel Mall, a key retail residential or commercial property in Riyadh, presents itself as an interesting 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 mall benefits from its position in a populous and upscale area of Riyadh.
- Substantial Size and Offering: The shopping center covers an acreage of 238,769 m two with a total built-up area of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size helps with a varied variety 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 TWO- This circulation caters to various retail and leisure experiences, interesting a wide consumer base.
Tenant Diversity: Al Nakheel Mall's tenant mix consists of a series of regional and global brands, bring in a varied group of consumers and ensuring constant tramp.
- Occupancy and Investment Potential: Since August 2022, the mall reported an occupancy rate of 82.0%. This fairly high tenancy rate, combined with its size and location, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, contributing 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.