Quick Answer: Warehouse for rent in Riyadh now averages SAR 208 to 238 per sqm per year for modern logistics stock, with occupancy at 97 to 98 percent and rents rising 9 to 16 percent year on year (Knight Frank KSA Industrial & Logistics Review, Autumn 2025; Arab News, October 2025). Older stock starts around SAR 100, and prime cold-chain or modern logistics parks command SAR 260 to 600 and above. Primary zones include MODON's First, Second, and Third Industrial Cities, the bonded Special Integrated Logistics Zone (SILZ) at King Salman International Airport, private logistics parks along the Riyadh to Dammam corridor, and Sudair Industrial City (MODON ground-lease model, rates on application). Typical sizes: 500 to 2,000 sqm for small operations, 2,000 to 10,000 sqm for medium distributors, and 10,000+ sqm for large logistics centres.
Industrial & Logistics Zones in Riyadh
First Industrial City (East Riyadh)
Established industrial zone with mature infrastructure. Mix of manufacturing, light industrial, and warehousing. Older facilities but cost-effective.
Second Industrial City (South Riyadh)
Larger, more modern facilities. Focus on heavy manufacturing and large-scale logistics. Better road access to major highways.
Airport Logistics Parks
New developments near King Khalid International Airport. Purpose-built for import/export operations. Premium pricing for strategic location.
Exit 11 Corridor
Emerging logistics corridor along the northern ring road. Good highway access and competitive pricing.
Third Industrial City (North Riyadh)
Newest of the MODON-administered cities, with modern infrastructure and master-planned plots for logistics, light manufacturing, and distribution.
Special Integrated Logistics Zone (SILZ)
Bonded zone at King Salman International Airport. Tax incentives and customs deferral for re-export operations and regional distribution hubs. Rates on application.
Sudair Industrial City
MODON-managed industrial city north of Riyadh on the Qassim road. Ground-lease model rather than rental; rates available on application from MODON. Suited to heavy industrial, manufacturing, and large-footprint logistics tenants.
Private Logistics Parks (Riyadh to Dammam Corridor)
Privately developed Grade A logistics parks along Highway 40 servicing the east-west supply chain. Higher specifications than older industrial cities, with rents in the SAR 260 to 400 per sqm per year range (Knight Frank, Autumn 2025).
What are current warehouse rental rates in Riyadh by stock type?
Warehouse rents in Riyadh vary by spec tier as much as by location. Modern logistics stock built since 2015 commands a substantial premium over older general industrial buildings.
| Stock Type | Rent Range (SAR/sqm/year) | Key Characteristics |
|---|---|---|
| Basic / older stock | SAR 100 to 180 | Pre-2015 build, sub-Grade-A spec, lower clear height (6 to 8m), manual loading |
| Standard industrial | SAR 180 to 260 | 8 to 10m clear height, basic dock-level loading, sprinklered |
| Modern logistics | SAR 260 to 400 | Post-2015 build, 10m+ clear height, dock-level loading, full sprinkler, Grade A spec |
| Prime / cold-chain | SAR 400 to 600+ | Temperature-controlled, advanced racking, premium location, build-to-suit |
Sources: Knight Frank KSA Industrial & Logistics Review, Autumn 2025; JLL Q2 2025 (submarket YoY range 4.7 to 25 percent); SAT data, Q1 2026, across 200+ transactions advised.
Warehouse Rental Rates by Location
| Location | Rent Range (SAR/sqm/year) | Best For |
|---|---|---|
| Airport Logistics Parks / SILZ | SAR 280 to 450 | Import/export, air freight, bonded re-export |
| Second / Third Industrial City | SAR 180 to 280 | Distribution, manufacturing, modern logistics |
| First Industrial City | SAR 130 to 220 | General industrial, storage, established operations |
| Exit 11 Corridor / North Riyadh | SAR 200 to 320 | E-commerce, 3PL, last-mile distribution |
| Private Logistics Parks (Riyadh to Dammam) | SAR 260 to 400 | Grade A logistics, east-west supply chain |
Sources: Knight Frank KSA Industrial & Logistics Review, Autumn 2025; JLL Q2 2025; SAT data, Q1 2026.
Key Warehouse Specifications
Clear Height: 6-12 meters for modern logistics facilities. Higher ceilings allow for racking and vertical storage.
Floor Loading: 3-5 tons per sqm for heavy goods. Light storage requires 1-2 tons per sqm.
Dock Doors: Critical for truck loading/unloading. Typically 1 dock per 1,500-2,000 sqm.
Yard Space: Essential for truck maneuvering and container storage. Typically 30-50% of warehouse area.
Warehouses for Rent in Riyadh: What Tenants Actually Pay For
Warehouse rents in Riyadh are rarely comparable by price alone. Tenants end up paying for clear height, yard depth and truck maneuvering, loading bays, power capacity, fire and civil defense compliance, and the quality of access to major logistics corridors. If you're searching for a warehouse for rent in Riyadh, the fastest way to avoid overpaying is to compare spaces on operational suitability first, then negotiate rent and incentives based on the true fit.
Industrial Facilities and Factories in Riyadh: Lease Terms That Matter
Industrial and factory leasing adds constraints that normal commercial deals don't have: permitted use, utility loads, hazardous material restrictions, fit-out responsibilities, civil defense and municipality requirements, and longer commitments due to CAPEX. For factories in Riyadh, the lease must clearly define compliance responsibility, handover condition, upgrade approvals, and exit terms. Otherwise tenants get trapped in costly obligations that weren't priced into the business plan.
FAQ: Warehouse Leasing in Riyadh
How much does warehouse space cost in Riyadh?
Warehouse rental rates in Riyadh range from SAR 100 per sqm per year for older basic stock to SAR 600 and above for prime cold-chain and build-to-suit logistics, with modern logistics stock averaging SAR 208 to 238 per sqm per year (Knight Frank, Autumn 2025). Rates rose 9 to 16 percent year on year in 2024 to 2025 (JLL Q2 2025; Arab News, October 2025).
What are the main industrial areas in Riyadh?
The primary industrial zones include the First Industrial City, Second Industrial City (south), and emerging logistics parks near King Khalid International Airport.
What size warehouse do I need for my business?
Small businesses typically need 500-2,000 sqm, medium distributors 2,000-10,000 sqm, and large logistics operations 10,000+ sqm.
Are warehouses near the airport more expensive?
Yes. Airport-adjacent logistics parks command 20-30% premium due to strategic location for import/export operations.
What specifications should I look for in a warehouse?
Key specifications include clear height (6-12m), floor loading capacity (3-5 tons/sqm), dock doors, yard space, power supply, and fire suppression systems.