Yes, office partitions can be removed, and most Melbourne leases require this as part of make-good obligations. You must return the tenancy to its original condition as it was at lease commencement.
The requirement to remove partitions usually depends on whether the tenant or the landlord performed the original installation.
What is a make-good obligation?
A make-good obligation requires the tenant to return the office to the condition it was in at lease commencement. This is the most common obligation for Melbourne tenants and often involves a full strip-out of partitions and joinery. Vague lease language such as “good repair and condition” frequently leads to disputes because landlords and tenants often have different interpretations of the requirement.
Fair wear and tear versus fitout removal
Fair wear and tear covers the gradual, normal deterioration of a space through reasonable everyday use, such as minor carpet wear or slight scuffing on walls. It does not cover modifications to the space or holes in walls caused by fitout fixings. If the landlord installed the partitions before the lease started, those elements are generally the landlord’s responsibility.
Cash settlements and make-good equivalents
Some landlords accept a make-good equivalent, which is a cash payment in lieu of physical works. This allows the tenant to avoid the disruption and logistics of a strip-out project while they move into a new office. The payment amount is usually calculated based on the estimated cost of the physical works.
The cost of full strip-outs
For large and highly fitted out office spaces in Melbourne, a full strip-out make-good can cost hundreds of thousands of dollars. These projects can take several weeks to complete and require careful management. Tenants should identify if a full strip-out is required before they install a fitout.
Reducing disputes through documentation
A thorough condition report which features photos and written descriptions is the most effective way to ensure a straightforward handover. Without this evidence, the process becomes a negotiation based on memory and interpretation. Clear records are the only way to avoid disputes over what the original condition actually looked like.
Planning your partition layout
Progressive Corporate can assist with space planning to ensure your layout meets current needs without creating excessive future liability. Contact our project team to discuss compliant partition options and documentation strategies.
Frequently asked questions
Do I have to remove partitions the landlord installed?
Generally, elements fitted by the landlord before lease commencement are their responsibility to manage, not yours to remove.
What is a make-good equivalent?
This is a cash payment paid to the landlord instead of physically completing the strip-out and reinstatement works.
Why is a condition report important for make-good?
It provides the documented evidence of the original space, which prevents disputes over what needs to be removed or repaired.
Questions to ask your fitout company before you sign
- Will these partition systems be easier to remove for make-good purposes compared to fixed walls?
- How should we document the current state of the base building to protect against future make-good claims?
- Can you provide a cost estimate for a full strip-out of this specific layout for my budget planning?