Space As A Service in Malta – What follows is an excerpt from an article appeared on the Investment Forum section of the Malta Chamber of Commerce web portal.
In this commentary, we discussed the main changes that we have noticed in the Commercial Real Estate Industry in Malta, across the main sectors, with a focus on Corporate Real Estate and how the market is evolving as a result of current market dynamics and changes in the demand side.
“A market snapshot
May 2021. Many of Malta’s Commercial Real Estate (CRE) landlords recently navigated a series of complex challenges including concessions, rent waivers and early terminations of leases resulting from the ‘black swan’ event that has defined our day-to-day behaviour for the last 18 months.
The implications on Real Estate capital values, cap rates and returns only added to such complexity.
The impact has been felt across the whole of the CRE spectrum, – and whilst there were lots of losers (even some ‘casualties’ so to speak) there is also an often-overlooked sector that has come out on top.
A trade-off was inevitable. Restrictions for safeguarding the health of our nationals caused the hospitality, catering, and retail sectors to take a substantial hit – and this was felt by lots of CRE Landlords in the related sectors.
Corporate spaces felt this too – yet to a lesser degree – as work from home practices became the de facto knee-jerk reaction for companies who had never even envisioned it as part of their operations model.
Meanwhile, industrial space, together with storage and distribution have enjoyed the spoils of war. Demand has skyrocketed in this sector.”
You may read the article in full on the Malta Chamber Website by following this link:
Space As A Service, Technology And The Evolution Of Commercial Real Estate In Malta
This is the first in a series of contributions and collaborations that we have planned wit the investment forum in the coming months.