A family office holding legacy commercial assets in Al Malaz engaged NOA Advisory to assess highest and best use scenarios, following three consecutive years of below-market occupancy and yield compression to 4.2%.
A family office with a legacy retail strip asset in Al Malaz engaged NOA Advisory to assess highest and best use following three consecutive years of below-market occupancy and yield compression to 4.2%. Our analysis evaluated four scenarios: continued retail operation, full residential conversion, serviced office repositioning, and mixed-use redevelopment with ground-floor F&B and upper-floor flexible workspace. The mixed-use scenario produced the highest risk-adjusted return, projecting a blended yield of 8.4% post-repositioning against a total development cost of SAR 18.5M. Key drivers were the asset's corner plot configuration, proximity to the Al Malaz commercial cluster, and the structural undersupply of quality F&B-anchored retail in the submarket. NOA Advisory is currently managing the repositioning mandate through to permit stage.
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hburepositioningal-malaz
