Riyadh’s retail realty market is a lively and developing landscape, offering a variety of chances for savvy investors. Based upon the detailed benchmarking report, here are some crucial characteristics forming this market:

Diversity in Residential Or Commercial Property Sizes: The market showcases a large range of residential or commercial property sizes, from large-scale malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m TWO, to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety caters to a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location but are spread out throughout the city. This circulation enables for a different investment technique, targeting various demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in consumer costs practices. This growth trajectory suggests a promising future for retail investments in the area.
Quality and Standards: The selected residential or commercial properties for the research study are noted for their high requirements and quality tenants. This aspect is essential as it affects foot traffic, occupant retention, and overall residential or commercial property value.
Catchment Areas

Catchment areas are a crucial element of retail genuine estate, especially for shopping centers, as they straight influence the prospective success of these residential or commercial properties. In Riyadh’s retail landscape, comprehending these areas is vital for financiers.

Here’s what the report exposes about catchment locations:

- Definition and Importance: A catchment location is the geographic location from which a shopping center or retail center draws its consumers. It’s substantial because 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 area covering an exceptional 40.5% of Riyadh’s population. This high percentage 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 considerable protection shows its importance as a retail destination.
- Riyadh Park Mall: This shopping 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 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 loyal client base that mainly 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 realty market, comprehending lease rates and tenancy trends is important for making informed financial investment choices.

- Granada Center Mall: Since August 2022, this mall, 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 impacted this figure.
- Riyadh Park Mall: This mall, presently the biggest in regards to Gross Leasable Area, has a remarkable tenancy rate of 91.2%, showing high occupant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping mall stands as another essential player in the market, reflecting a strong and steady renter base.
- Al Nakheel Mall: This residential or commercial property, important 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 two per year aren’t attended to each shopping mall, the report shows that all the malls consisted of follow a similar prices structure. This harmony recommends a market requirement, which can be a critical aspect for financiers when examining the potential roi.
Quotation from the Report:

- “Occupancy (Aug 2022): 91.2%” [Riyadh Park Mall]
- “Currently the second biggest mall in Riyadh according to the Gross Leasable Area.” [Granada Center Mall]
- “Another big shopping mall in Riyadh. The tenancy is excellent 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 financial investment in Riyadh’s dynamic market. Here’s a thorough look at its attributes, making it a notable case 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 a land location of 139,118 m TWO, using adequate area for a varied variety of retail and entertainment alternatives.
- 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 considerable size is distributed throughout three floors, supplying a large array of renting alternatives.
- 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 TWO
  . -This circulation permits a varied mix of retail, dining, and home entertainment outlets.
  
• Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor shops, further boosting its appeal. The diversity in its tenant mix deals with a broad spectrum of customer choices.
  - Occupancy Rates: As of August 2022, the shopping center had a high occupancy rate of 91.2%. This is a sign of its appeal among merchants and customers alike, recommending a stable stream of foot traffic and consistent earnings generation.
  - Investment Appeal: Given its tactical location, substantial GLA, diverse tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success aspects function as a guide for what investors need to look for in potential 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”.
  - “Land Area: 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 location in Riyadh, offers valuable insights into the city’s retail property market. Let’s check out why it stands as a significant case study for possible investors:
  
  - Prime Location: The shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to draw in a wide customer base.
  - Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is one of the biggest in Riyadh. It has an overall built-up location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m ²
  . -Leasable Area and Structure: The shopping center’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 occupants, including local and international brand names, which accommodates a broad demographic, increasing its appeal as a retail location.
  - Occupancy Rate: Despite being partly under remodelling, the shopping mall preserved 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, place, and tenant mix position it as a strong competitor in Riyadh’s retail market. Its big GLA and restoration strategies signal capacity for worth appreciation, making it an enticing choice for financiers.
  Quotation from the Report:
  
  - “Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah”.
  - “Land Area: 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 remodelling)“.
  Case Study 3: Al Nakheel Mall
  
  Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an interesting case study for investors. 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 center gain from its position in a populous and affluent location of Riyadh.
  - Substantial Size and Offering: The shopping mall 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 extensive size assists in a varied variety of retail and leisure offerings.
  - Leasable Area Across Floors:.
  
• Second Floor: 20,767 m TWO
  . -First Floor: 58,463 m TWO
  . Ground Floor: 2,091 m TWO- This circulation caters to different retail and leisure experiences, appealing to a wide customer base.
  
• Tenant Diversity: Al Nakheel Mall’s renter mix includes a range of regional and global brand names, attracting a diverse group of shoppers and ensuring consistent tramp.
  - Occupancy and Investment Potential: As of August 2022, the mall reported a tenancy rate of 82.0%. This relatively high occupancy rate, combined with its size and area, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
  - Additional Considerations: The shopping mall belongs to the Arabian Center Group, including to its trustworthiness and appeal. Its large GLA and diverse renter mix position it well within the competitive landscape of Riyadh’s retail residential or commercial properties.
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