Office make good costs in Melbourne typically range from $15,000 to $60,000 for small offices under 200sqm, $60,000 to $180,000 for medium spaces up to 500sqm, and $180,000 to $500,000 plus for larger offices.
Final costs depend heavily on the condition of the space at lease expiry, the specific reinstatement requirements of the landlord, and whether the building contains hazardous materials.
Indicative cost ranges for Melbourne offices
Costs vary based on the size of the office and the extent of the restoration works. Small office make goods under 200sqm typically cost between $15,000 to $60,000. Medium offices between 200 to 500sqm range from $60,000 to $180,000, while large offices over 500sqm can cost $180,000 to $500,000 or more.
Factors affecting make good costs
The condition of the tenancy at expiry is a primary cost driver. Spaces left in poor condition cost more to restore than well maintained ones. Returning services like HVAC, electrical, and plumbing to their original configuration often involves multiple licensed trades. These service reinstatement works are typically a significant cost item in any make good budget and must be coordinated to avoid delays.
Hidden costs in older Melbourne buildings
Hazardous materials such as asbestos in older Melbourne buildings require licensed removal before any strip out works begin. This necessity adds unexpected cost and extends the project timeline significantly. Additionally, heavy fitout works sometimes cause damage to floors, walls, or ceilings that is not obvious until demolition starts, requiring unplanned structural repairs.
Compliance and landlord risks
When reinstating building services, contractors may find that existing systems no longer meet current building codes. Bringing these systems up to standard can become a tenant obligation depending on the specific terms of the lease. If a tenant fails to finish these works by expiry, landlords often engage their own contractors and charge the cost back to the tenant at a much higher rate.
Reducing your end of lease liability
Timeline pressure increases costs because tenants often pay premium rates for contractor availability when scrambling in the final weeks of a lease. Early planning provides better pricing and ensures the space is returned to the landlord without dispute. Progressive Corporate’s project team can conduct a detailed site assessment to identify potential structural or service issues before the lease ends.
Frequently asked questions
What is an office make good?
It is the process of returning a commercial tenancy to its original condition at the end of a lease.
Does a strip out differ from a make good?
A strip out is the removal of the existing fitout, while make good includes restoring the base building services and finishes.
Why do compliance upgrades occur during make good?
Existing systems may no longer meet current building codes when they are reinstated to the base building standard.
Questions to ask your fitout company before you sign
- Does the quote include the licensed removal of hazardous materials if they are discovered during the strip out?
- How will you manage the reinstatement of HVAC and electrical services to satisfy the specific requirements of the landlord?
- What is the process for documenting the space condition to avoid disputes with the landlord at practical completion?