The occupancy cost of the average office in Malta is around €550 per square metre annually – putting the island on par with Milan and Munich, according to research conducted by Cushman and Wakefield Research.
London’s West End is the most expensive at €2,122 per square metre annually, followed by Hong Kong Central and Moscow Russia at €1,432 and €1,092 respectively.
Malta has similar rates to those ranking in the 20th place out of the list of 67 countries: Istanbul in Turkey, Milan in Italy and Munich in Germany, Frank Salt Real Estate’s commercial division manager Rita Schembri explained.
“This is as a result of the limited land we have in Malta which drives up the cost of purchasing adequate sites for office space,” she said.
With some 5,000 companies being added every year, the demand for office space is clearly growing – but with so many expatriates employed in the majority of these new firms, preferences have changed.
The Maltese would traditionally seek office space inland, meaning San Ġwann, Naxxar, Mosta, Birkirkara and Żebbuġ - where prices and rents were cheaper and parking and commuting were easier, she explained.
“But offices in Sliema/St Julian’s are now the most sought after, fetching the highest prices – particularly if they have a seaview. Foreigners and young people generally wish to remain within walking distance or a short commute to and from work and they also prefer to live and work close to the main entertainment hub,” Ms Schembri said.
Purpose-built complexes fetch the highest rates, especially when one factors in CAM charges (Common Area Charges). They however offer the best option for a trouble free rental.
However, there are not that many available. Robert Spiteri Paris, the head of letting at Perry, said that with Portomaso and Tigné fully occupied, they were struggling to find quality office space.
“At the moment we are lucky as we have a number of small office blocks to fill the current gap but a crisis is looming. Thankfully investors and property contractors have realised the potential of office space and considerable investments are being made. But the larger blocks cannot come soon enough,” he said.
It is not only the location preference which has changed. Companies are rarely willing to squeeze their offices into a residential layout – but with technology, even more flexibility is being sought.
Work has gone from being paper-based to being digital but with technology, the options are no longer just open plan or cubicle or even hot-desking, but whether to be in an office at all.
This is certainly uppermost on the minds of developers like Exalco, which is currently constructing the Golden Mile Business centre in St George’s Bay.
Managing director Alex Montanaro said that it is certainly beneficial to conclude contracts with agents or tenants before finishing works are completed.
“You have to adopt a flexible approach, and ensure that if tenants want spaces tailored to their specific requirements, this can be done,” he said.
Although in an ideal world all the tenants would be signed up before work even started on an office complex that is rarely possible.
“What we do is leave spaces with all the basics in place so that when a new tenant comes, we only need to tackle their specific requests,” Mr Montanaro said.
Designer Vera Sant Fournier, creative director at VSF, is also an advocate of careful design – stressing that this was not just about aesthetics as professionally designed establishments create happier working environments for the staff – and in turn a more prosperous business.
“When we look at designing a commercial outlet we must firstly take the laws and regulations in consideration, good traffic control, appropriate access to all areas, security and safety. Look at the nature of the business and together with the client and the staff research what they need to be most proactive in, how you can make the work flow better.
“Designing office spaces means strategically placed printers, stationery and storage among a few key points.
“Lighting is of extreme importance as extra glare or a sickly white light causes the staff to feel tired and may also cause unhealthy work conditions if they are looking at a computer screen all day, putting too much stress on the eyes,” she said.
It is very important to understand the exact requirements and environment of the company in question
The latest trends in office design do not only affect layout but also furniture. Brands International chief operating officer Anthony Mercieca said that the need to balance the needs of people, environment, design and technology has greatly increased.
“It is very important to understand the exact requirements and environment of the company in question. First and foremost, the role of an office furniture provider is a consultative one, as there are so many systems and technologies on offer. Secondly, it has become a priority to focus achieving a comfortable home-like environment within the office.
“We spend most of our day here, so being in an environment which makes you feel comfortable is as important psychologically as is the importance of sitting in an ergonomic chair for your physical health. Creating an environment which is aesthetically pleasing and has good functional design ultimately results in higher productivity and reduced stress levels,” Mr Mercieca said.
He also stressed that the fundamentals have not changed as dramatically as articles about hot-desking and paperless offices would have us believe.
“The reality is that no office can be 100 per cent paperless, so storage solutions are still a big priority for our clients. Also, although there are more open space offices, there is still a need for certain levels of privacy and excellent acoustic properties, as distractions do tend to arise in such set-ups. Consider the right type of partitioning, or at least ensure that there is an area where private discussions and team gatherings can take place effectively.
“Needless to say, this can always done in a way that ensures the overall company objective and style that the particular client is after, to ensure a coordinated and functional look and feel,” Mr Mercieca said.
One thing that most office developments now offer as standard is a robust IT backbone. Michael Bugeja, the head of telecommunications and ICT at Tektraco Ltd, stressed that 24/7 connectivity and data availability was crucial to companies of all sizes: “Security, manageability, mobility and remote access, scalability and reliability are common features for most offices. After all, everyone has the same aims: to achieve a more productive work environment while minimising costs, to do more with less.”
The shift to digital systems means that voice, wired & wireless data networks, IPTV, CCTV, access control and other systems communicate over a common network infrastructure using Internet Protocol (IP) technology.
“There are a number of other key benefits that an IP converged system can offer, ranging from fast and cost-effective initial network deployment to a better overall network reliability,” he said.
“Companies that use these smart technologies will not only increase their productivity while minimising their costs – resulting in improved customer satisfaction – but will also have an edge over the competition,” he reassured.
Did you know?
The term hot-desking is thought to be derived from the naval practice, hot racking, where sailors on different shifts share the same bunks.
Source: Wikipedia