LEASE MAKE GOOD
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End-of-lease make good is one of those costs that catches commercial tenants off guard. Not because it is hidden, but because most people do not think about it until the lease is nearly up, by which point there is not much time to plan properly.
This guide focuses specifically on the service cost side of make good across the full spectrum of project types. For a breakdown of what a commercial stripout involves physically, see:
What Is an Office Stripout?
nmgs.com.au/blog/office-stripout-process-explained
For a detailed look at what drives cost variation, see:
How Much Does a Commercial Stripout Cost?
Make good is a broad term and the scope varies significantly from one tenancy to the next. Office make good costs refer to the expenses involved in restoring a commercial tenancy back to its agreed condition at the end of a lease. Depending on your lease and the condition of your tenancy, this may include:
The final scope depends on four things: your lease agreement, landlord expectations, building rules, and the condition report from the start of the lease.
Commercial office refurbishments and make good projects at NMGS generally start from around $15,000 for minor upgrades and can exceed $250,000 for larger fitouts, staged refurbishments, and complex live-site projects. The best way to obtain accurate pricing is through a tailored site inspection and scope review.
The table below shows indicative ranges by project type based on NMGS project experience.
|
Project Type |
Typical Range |
Typical Scope |
|
Office stripout / defit |
$8,000 to $20,000 |
Fitout removal, services disconnection, waste disposal |
|
Small office refresh |
$15,000 to $30,000 |
Targeted defit, minor repairs, repaint, end-of-lease clean |
|
Mid-size office refurbishment |
$40,000 to $150,000 |
Full stripout, repairs, reinstatement, repaint, clean, services scope |
|
Full office fitout / refurbishment |
$150,000+ |
Complete defit, full reinstatement, compliance works, specialist trades |
|
Warehouse office refurbishment |
$25,000+ |
Office defit, repairs, repaint, services; warehouse scope quoted separately |
|
Industrial refurbishment |
Project-specific |
Racking removal, floor sealing, line marking, industrial services; site inspection required |
|
Important These figures are indicative ranges. Your actual cost depends on lease scope, building condition, fitout complexity, access constraints, and location. A site inspection is required for accurate pricing. |
The lease is the single most important variable. Phrases like ‘return to original condition’, ‘base building standard’, and ‘as at commencement’ each imply a different scope and a different cost. If your clause is ambiguous, that ambiguity tends to be resolved at the landlord inspection, often in the landlord’s favour.
A basic open-plan tenancy with standard workstations is comparatively straightforward to make good. A heavily fitted space with custom partitioning, raised flooring, a server room, supplementary air conditioning, and branded walls is a much larger project.
Services decommissioning and reinstatement are frequently underestimated. Data cabling and structured cabling removal, server room decommissioning, supplementary HVAC removal, and plumbing reinstatement for fitout-specific wet areas all sit in this category.
A CBD tenancy in a building with restricted lift access, limited loading dock hours, and after-hours noise restrictions runs at a higher cost per day than a ground-floor tenancy with open site access.
In buildings constructed before the mid-1980s, asbestos-containing materials may be present. A licensed assessment is required before demolition begins. If ACMs are found, licensed removal is required under Australian WHS legislation. This is mandatory, not discretionary.
Not all of what the make good clause technically requires will necessarily be enforced. If parts of your fitout add genuine value for the next tenant, or if the landlord has their own plans for the space, there may be room to agree on a reduced scope. This conversation is most productive when started well before lease expiry.
Without a site inspection and a confirmed scope, contractors make different assumptions. One might include asbestos allowances; another might not. The difference in the quote is often about what each contractor thinks is included, not about margin.
Commercial make good requires licensed builders, electricians, and plumbers. Quotes that come in noticeably lower often reflect unlicensed labour or contractors who do not hold the required builder registration for all scope items. Defective works can be rejected at final inspection at the tenant’s cost.
Some quotes exclude waste disposal, permit fees, and asbestos management. Ask for a line-item breakdown and confirm exclusions. A slightly higher all-inclusive quote from a licensed contractor is often better value than a lower number that grows through variations.
|
NMGS approach to quoting We conduct a site inspection before every quote and provide a written scope and price based on confirmed requirements. If something emerges during works that was not visible at inspection, we tell you before it becomes a cost variation. |
A small office defit covering fitout removal, services disconnection, and waste disposal typically starts from $8,000 to $20,000. Add repairs, repainting, and a clean and you are generally looking at $15,000 to $30,000. A site inspection confirms the number.
In standard Australian commercial leases, the outgoing tenant is responsible for all make good costs unless the lease states otherwise.
We can give you a broad indicative range based on project type and size. For a quote you can rely on, a site inspection is required. The difference between what a space looks like on paper and what is actually there is often significant.
Yes. Industrial and warehouse make good is project-specific because scope varies significantly. It can include racking removal, floor sealing, line marking removal, and industrial services decommissioning. We quote these following a site inspection.
NMGS is a Registered Commercial Builder with over 50 years of experience delivering professional lease make good services across Melbourne, Sydney, Brisbane, and nationally. We offer obligation-free site inspections and written quotes based on confirmed scope.
Contact NMGS: nmgs.com.au/make-good/
Phone: 1300 364 994
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Other Guides in This Series → How Much Does a Commercial Stripout Cost in Australia? nmgs.com.au/blog/commercial-stripout-cost-australia → How Much Does a Professional Lease Make Good Service Cost? nmgs.com.au/blog/lease-make-good-service-cost → How to Estimate Make Good Costs for an Office Tenancy nmgs.com.au/blog/how-to-estimate-make-good-costs-office-tenancy → How to Plan an Office Stripout Before Refurbishment nmgs.com.au/blog/how-to-plan-office-stripout-before-refurbishment → Office Defit Checklist for Tenants |
What drives the cost of a commercial office stripout in Australia? From small offices to large defits, this guide explains the real cost factors and
Not sure what an office stripout involves? We break down the full process, how it differs from make good, and what Australian tenants need to
LEASE MAKE GOOD How Much Does a Professional Lease Make Good Service Cost? Published by Updated on Subscribe to our newsletter Subscribe to get performance-led
