Commercial Buildings for Sale in Jeddah

Jeddah's income-building market is driven by family-office capital recycling out of legacy assets, GCC investors targeting SAR-denominated yields, and Saudi institutions consolidating residential portfolios. The strongest demand is for stabilised residential towers in Al Hamra, Al Salamah and Al Rawdah, and mixed-use assets on main commercial corridors.

2026 has seen cap rates compress 25–50 bps on prime residential and stay flat on secondary office, reflecting the strong rental fundamentals from population growth and corporate relocations.

• Rent roll verified against tenancy contracts and bank statements (not asking rent).
• WAULT and rollover schedule modelled across 5 years.
• Occupancy and arrears trended over 24 months.
• Service charge reconciliation and recovery rate.
• Capex profile — MEP age, lifts, façade, civil defence compliance.
• Cap rate sanity-checked against comparable transactions, not just listings.
• Sensitivity on vacancy, rent decline and capex shock.

1. Investment brief — ticket size, target yield, hold horizon, leverage.
2. Off-market and on-market shortlist with full underwriting packs.
3. Site walk, tenant interviews where appropriate.
4. Non-binding LOI with price, conditions and exclusivity.
5. Full due diligence — legal, technical, financial.
6. SPA negotiation, deposit in escrow.
7. Closing, RETT paid, tenant transfer notices issued.

• RETT: 5% of price.
• Brokerage: 2.5% + VAT (negotiable on large tickets).
• Legal & technical due diligence: SAR 25,000–150,000 depending on asset complexity.
• Bank arrangement fees on leveraged deals: 0.5–1.25% of facility.
• Property management transition: 2–4 weeks, typically 6–9% of gross rent ongoing.