Office Downsizing in Malta: Practical Solutions for Businesses Facing Changes
What to Do If Your Business Can No Longer Keep Its Current Office Space in Malta
Running a business means adapting to constant change. Market shifts, staffing needs, or financial realities may force a company to reconsider its office space. In Malta, where office rent agreements are usually long-term and binding, businesses often face a difficult situation: what if the office space they committed to is no longer suitable or affordable?
The truth is, most commercial lease agreements must be honored, regardless of a company’s circumstances. That’s why choosing the right office space in Malta from the start is crucial. But if your business is already committed and needs to adjust, here are practical, educated ways to approach the problem.
1. Downsizing Office Space in Malta
If your team has become smaller or remote work reduced your office needs, downsizing can cut expenses significantly. For example:
A 150 m² office in Sliema within a business centre might cost €3,500/month.
Downsizing to a 90 m² standalone office in central Malta could cost €1,800–€2,000/month.
This could mean a monthly saving of €1,500–€1,700 while still maintaining a professional workspace.
2. Moving to a Less Sought-After Location
Location is one of the biggest cost factors in Malta. High-demand areas like Sliema, St. Julian’s, or Valletta can command 40–60% higher rents than offices in Birkirkara, Mosta, or Qormi.
For instance:
100 m² in a business centre in St. Julian’s → approx. €2,800/month.
100 m² standalone office in Birkirkara → approx. €1,600/month.
That’s a potential saving of €1,200 per month, or €14,400 per year—while still being in a well-connected business hub.
3. Subleasing Part of the Office (If the Agreement Allows)
Some commercial leases in Malta allow subleasing. If your office is larger than your current needs, consider renting part of it to another company or a freelancer collective.
Example:
You rent 150 m² in Gżira at €3,000/month but only use 100 m².
Sublease 50 m² to a third party for €1,000/month.
This reduces your net monthly rent to €2,000 while keeping your existing agreement intact.
Tips for Businesses Facing Office Rent Challenges in Malta
Review your lease agreement carefully: Understand your obligations, notice periods, and whether subleasing is permitted.
Negotiate with the landlord: Many property owners prefer to adjust terms rather than risk a tenant default.
Consider hybrid solutions: Combine a smaller office with co-working memberships for staff.
Calculate long-term impact: Relocation costs, IT setup, and moving expenses may offset short-term savings. Always compare the total cost, not just rent.
Seek professional advice: A local real estate advisor familiar with Malta’s office rental market can highlight hidden opportunities.
In Malta, commercial lease agreements are legally binding, and businesses must usually fulfill them regardless of changing circumstances. That’s why it’s vital to make the right decision before committing to an office space. However, if your company finds itself in difficulty, options like downsizing, relocating to a less expensive area, or subleasing part of the office can provide much-needed flexibility.
The key is to act early, calculate costs carefully, and approach negotiations with a professional, solutions-oriented mindset. With the right strategy, your office space in Malta can adapt to your business—not the other way around.