When it comes to commercial property, an important option which your consultant will help you consider is whether to buy or to enter into a lease for a commercial property.

Commercial leases tend to be for longer time periods than residential property leases. The average tends to be three to five years for commercial spaces and one year for residential. Leasing may suit a business that is a start-up as it requires less up-front capital and a lower bank loan. It may also suit businesses that may be in Malta temporarily or those still considering whether or not to establish long-term roots here.

However, the property market being as lucrative as it is in Malta, and the fact that the island is small and limited in available space for development, it usually makes good business sense to purchase property since it is bound to increase in value in a few years, thereby adding to the overall value of the company’s assets.

The commercial property consultant works directly with the client to understand the particular specifics of the proposed business venture for the property required. Purchasing or renting commercial space is an intricate part of a company’s business plan and the decision of what and where to buy can make or break a business. The more detailed the property negotiator’s understanding of your business venture, the better the property fit that can be located.

Rita Schembri is commercial division manager, www.franksalt.com.mt.