As a commercial tenant, the excitement of moving into a new space is often balanced by the looming stress of vacating the old one. Most commercial leases in Australia include a “Makegood” clause, a legal requirement that mandates you return the premises to its original base-building condition before you hand back the keys.
An office strip out, often referred to as a commercial defit, can be a logistical minefield if not approached with a clear strategy. If managed poorly, these projects can lead to unexpected costs, holdover rent, and the potential loss of your security bond. By understanding the nuances of the process, you can ensure a seamless handover and a full bond return.
Book a meeting with the Makegoods team to discuss your end-of-lease requirements.
Understand your makegood obligations early
The first step in any successful office exit is to dive into the fine print of your lease agreement long before the final month of your tenancy.
Makegood requirements are rarely “one size fits all,” and misunderstanding a single clause can result in tens of thousands of dollars in unexpected contractor fees. Navigating these negotiations requires a keen eye, which is why we recommend consulting with a commercial tenant advisory specialist to interpret your specific obligations.
- Standard makegood: Removing all non-permanent fixtures, such as workstations and demountable partitions.
- Service reinstatement: Returning fire, electrical, and HVAC systems to the landlord’s original base-building layout.
- Cash settlements: Investigating if a financial payout is more viable than physical demolition.
Secure planning and building approvals
One of the most overlooked aspects of a commercial defit is the legal paperwork required by local authorities.
In New South Wales, the majority of office strip outs necessitate a Complying Development Certificate (CDC) to ensure the works don’t compromise building integrity. Operating without the correct permits is a significant risk that can lead to heavy fines from local councils or work-stop orders that eat into your remaining lease timeframe.
- CDC requirements: Most “hard” strip outs require a certificate to verify compliance with fire safety and egress codes.
- Council compliance: Ensuring all work adheres to the National Construction Code (NCC) 2022.
- Liability protection: Valid approvals protect the tenant from long-term legal claims regarding unauthorised modifications.
Hire licensed strip out specialists
A common mistake made by many businesses is hiring general laborers or rubbish removers to handle a technical defit.
While it might seem like a way to save money upfront, an office strip out requires licensed tradespeople who understand the delicate infrastructure of a commercial building. At Makegoods, we specialise in this level of precision, ensuring that the heavy lifting is done without damaging the landlord’s assets.
- Technical decommissioning: Safely removing data and electrical cabling without disrupting the building’s primary backbone.
- Certified manpower: Utilising trained staff who hold the necessary tickets for hazardous material handling and specialised machinery.
- Bond guarantee: Working directly with building managers to ensure the final result meets their specific “handover-ready” standards.
Coordinate with building management and logistics
An office strip out is a high-impact activity that can be incredibly disruptive to a functioning commercial hub.
To avoid “bottleneck” delays, your project manager must maintain constant communication with building management. Proper coordination ensures that the work progresses without noise complaints or access issues that could stall your project.
- Elevator and dock bookings: Reserving service lifts and loading zones to prevent conflicts with other tenants.
- After-hours scheduling: Moving noisy tasks—like floor grinding or partition drilling—to evenings or weekends to comply with building rules.
- Waste management: Coordinating the placement and frequent removal of skip bins to maintain site safety and cleanliness.
Use photographic evidence to protect your bond
Disputes between tenants and landlords frequently arise when a landlord claims that the strip out process caused damage to the base building.
To protect your financial interests, it is vital to have a professional dilapidation report completed before any tools touch the floor. This documentation makes it much harder for a landlord to unfairly withhold your security deposit, giving you the peace of mind you need to move into your next venture.
- Pre-work inspections: Capturing timestamped photos of existing scuffs, cracks, or mechanical issues.
- Handover evidence pack: Providing the landlord with a digital portfolio showing the pristine condition of the vacated space.
- Verification of scope: Proving that all items listed in the makegood clause have been addressed to the letter.
Ready for your office strip out?
Don’t leave your security deposit to chance by rushing through the final weeks of your lease. Whether you are expanding your footprint or closing a site, the team at Makegoods brings over 14 years of specialised experience to every project. We understand the pressure of lease deadlines and the complexities of Sydney’s commercial landscape. Our goal is to take the operational burden off your shoulders so you can focus on your business’s future.