We cater for requests for letting of commercial property in Malta by clients looking for anything from retail outlets, to offices, warehouses, industrial parks, bars, cafes and restaurants – and more.
When it comes to the rental of commercial properties, prospective tenants have lots of considerations to evaluate in order to define their search criteria. These variables include the nature of their business as well as their growth plans.
Choosing an ideal location for commercial property will be based on the operation of the business. A prospective tenant would do well to ask himself the question “What effect will the location of the property have on my business?”, to which the answer may vary from “none” to “total impact” or somewhere in between – and this can be highlighted incredibly well in the case of retail outlets aimed at specific consumers.
Take a high street fashion brand for example. They would undoubtedly need representation in the most popular areas with shoppers. In Malta, these happen to be located in very specific roads in Valletta, Sliema, St. Julian’s, Paola, and Birkirkara.
The same is true for businesses of an industrial nature as these would need to be located in areas where heavy machinery is likely to be used, possibly 24 hours a day and 7 days a week, and that would require the access for heavy vehicles to deliver or pick up raw/finished materials at various hours of the week.
Such considerations will help a prospective tenant looking for a commercial property in Malta for rent to come to some conclusions for his preferred locations knowing that there would be a large number of areas that could be excluded from the outset.
To keep in line with the example quoted above, prices for commercial properties in Malta for rent are determined by numerous factors that include commercial activity in the area, and availability of property that meets the required criteria. These two are the highest determining factors in the pricing of commercial property in a specific area.
A specific property may enjoy certain qualities that may give it more value than a similar property, so when making comparisons one needs to take each property for its individual merits. A ground floor office, for example, being compared to a third-floor office may be valued at a higher price due to the fact that it may also serve its purpose as a retail outlet, a classification that the third-floor property may not be eligible for.
The internal height of a property will also have an impact on its value, and once again this is often overlooked by some less-experienced investors or estate agents who do not highlight the added value that higher ceilings could provide.
Apart from an obvious advantage as regards to the storage capacity if used creatively, the height of a ground floor commercial property for rent be increased, thus offering higher value if it’s floor could be somehow receded. It is an often-overlooked quality of a ground floor property however the potential to have a basement dug-out (if structurally possible) may increase it’s area substantially.
We’ve had a situation where our clients seemed to not consider the height as of the property as advantageous until we made them aware of its benefits and potential value, after which they opted for an older type building that offered a more generous height when compared to a newer build that barely met the minimum height requirements for a commercial space.
Apart from space for additional storage and an industrial look, the height of the said property, whilst it didn’t offer much as regards to value as it stood, became a valuable asset when the floor of the space was lowered by two courses, thus creating a possibility for a mezzanine floor to be introduced in the space. The landlord of the property was happy about the additional value that this perspective offered and was happy to welcome the tenant to sign a 20-year lease on an office that was leased out to be used as a catering outlet creating a win/win situation for both the landlord and the tenant.
Of course, there may be other factors that could have influence on the price to let, such as changes in legislation, new protocols and/or standards introduced by relevant authorities as well as further macro-economic factors like Gross Domestic Product, Unemployment rates, interest rates, etc… however, the market in Malta is relatively small and somewhat insulated from such macro-economic factors having too much of a long term impact on commercial property letting prices.
The units for commercial property in Malta are often quoted in Price per square metre per year, and this helps to better compare between areas as well as between one opportunity and another.
When it comes to retail, some landlords quote a daily rate because shop owners often calculate their expenses in relation to their daily revenues as it may give them a more granular perspective, on relative costs. This may easily be converted to a price per m2 by multiplying the daily rate to bring it up to one year, and dividing by the size of the property to get a better perspective in order to make a more educated comparison when deciding between one property and another.
In general, some locations are more costly than others and we may easily summarise the relative values in the list below using offices as an example to understand the relations between the most popular areas on the islands:
Type of Commercial Activity
Towns & Villages
Corporate use – Business Towers & Business Centres
Primary Areas – Sliema, St. Julian’s, Tigne (Sliema), Valletta
€500 – €1000 per m2/year
Corporate, Retail & Tourism
Primary Areas – Sliema, St. Julian’s, Gzira, Ta’ Xbiex, Msida, Valletta
€250 – €500 per m2/year
Corporate, retail & Tourism use
Secondary Areas – Mriehel, Birkirkara, Naxxar, Mosta, Floriana, Santa Venera, Qormi
€160 – €300 per m2/year
We’re here to help you at every step of the way, so just get int touch for a friendly no-obligation chat about the various market dynamics at play in the Maltese Commercial Real Estate Rental market. We’re happy to share our tips based on years of first-hand experience in the field, and in-turn help you to make the best decision possible when choosing which commercial property rental would best suit your company and business operations. Get in touch by calling us, or simply visit our contact page to request a callback right away