When taking on a commercial or industrial lease, tenants are often focused on creating a workplace that looks great and functions well for their business. However, it’s important to think ahead to the end of the lease and the obligations that come with a make good provision.
A make good is the process of restoring a leased property back to its original condition, and it can become very expensive if the initial fit-out involves heavy structural changes or specialised finishes. Therefore, planning ahead for when the time comes can save money, as well as make maintenance and repairs more affordable along the way.
By making smart fit-out design choices at the beginning of your tenancy, you can reduce the complexity of future make good works, save money, and avoid disputes with your landlord. Below, we outline ten practical decisions that can make a big difference when it comes to lowering make good costs.
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10 design choices that lower make good expenses
Here are 10 of the best design choices you can make when it comes to your chosen fitout, that will help minimise defit and makegood costs. Along with that, these elements come with a range of other great benefits, such as more affordable maintenance.
Install carpet tiles instead of broadloom carpet
Carpet tiles provide flexibility and practicality compared to broadloom carpet. If an area becomes stained or damaged, tiles can be replaced individually without disrupting the entire floor covering. This reduces reinstatement costs at the end of a lease and ensures the flooring looks presentable throughout the tenancy. Many landlords also prefer tiles as they align with modern commercial fit-out standards.
Choose neutral, landlord-friendly finishes
Bold colours and customised finishes may suit your brand identity, but they often need to be repainted or replaced during make good. By selecting neutral tones and finishes that align with typical landlord preferences, you reduce the likelihood of costly surface restoration later. A simple, professional look can still be achieved while keeping future obligations in mind.
Surface-mounted services over concealed installations
Running cabling, power, and data through trunking, skirting ducts, or surface-mounted conduits makes removal at lease expiry straightforward. Concealed installations often require invasive demolition and repair, adding significant expense to make good works. Surface-mounted solutions not only reduce end-of-lease costs but also provide easy access for ongoing maintenance during your tenancy.
Use modular, demountable partitions instead of fixed walls
Partitions and walls are common in commercial offices, but fixed drywall systems can be expensive to remove and patch. Modular, demountable partitions provide flexibility, allowing you to adjust layouts during your lease and remove them with minimal damage to floors, ceilings, and walls. This simple design decision can drastically reduce strip-out costs at the end of your tenancy.
Avoid structural modifications
Drilling into slabs, cutting concrete, or making changes to the building’s structure nearly always requires complete reinstatement at lease end. These works are complex and expensive, often involving engineering approvals and landlord oversight. Avoiding structural alterations where possible will make your future make good obligations far more manageable.
Use freestanding furniture and joinery rather than built-in units
Freestanding desks, shelving, and storage units can be taken with you when you vacate, leaving the base building largely intact. Built-in joinery, on the other hand, typically requires demolition and repair work when removed. By opting for movable furniture, you not only reduce future costs but also enjoy more flexibility during your lease.
Limit ceiling alterations
Custom ceilings, feature panels, and recessed designs can be visually impressive, but they create expensive reinstatement obligations. Working within the existing ceiling grid or installing suspended features that are easy to remove will make handover much simpler. Keeping ceiling alterations minimal is a straightforward way to cut down on make good costs.
Stick with landlord-standard lighting
Lighting upgrades are often one of the first things tenants consider when fitting out a space. However, if the lighting you install differs significantly from the landlord’s base building standard, you may be required to remove it entirely at lease end. Retaining or replicating landlord-standard fittings reduces the need for full replacement and avoids unnecessary costs.
Design open-plan layouts over enclosed offices
Open-plan layouts provide flexibility for teams and minimise the amount of walls, doors, and glazing that need to be installed. At the end of the lease, fewer built elements mean fewer items to strip out and repair. This approach not only saves money during make good but also appeals to landlords who want versatile spaces for new tenants.
Coordinate early with the landlord on fit-out standards
Perhaps the most important step of all is engaging with your landlord early in the design phase. Aligning your fit-out choices with their long-term plans for the property may result in fewer reinstatement requirements at lease end. In some cases, landlords may even allow tenants to leave fit-out elements in place if they add value for future occupants.
Book a meeting with our team to discuss your makegood
Thinking ahead at the fit-out stage can save you significant time, stress, and money when it comes to make good obligations. At Makegoods.com.au, we help tenants plan and deliver fit-outs with end-of-lease requirements in mind. Our expert team also manages complete make good projects, ensuring compliance with lease terms and avoiding costly disputes.
Book a meeting with our team today to discuss your makegood.