What is a ‘Make-Good’ Clause in an office lease?
Is a typical clause included in most commercial leases requiring tenants to return the property or office space to its original form or state. Make good clauses are most likely to appear in a commercial lease where the tenants lease a building or office space as a blank canvas, and intend to reconfigure an existing fit-out or design and construct a new fitout. It is important to ensure that make good arrangements are agreed upon prior to signing a lease, and have a clearly documented agreement of how the office should be left once lease has finished and preparing to vacate the premises.
What should you do if you are coming to the end of your lease?
List any change that you have made to the office or premises for the duration of the lease period. It is recommended that you walk through the space in a methodical and thorough way looking for changes including:
- Joinery: Fixed joinery items including; bar units, credenzas, storage.
- Painted walls: Including murals and wall paper.
- Fixtures and Fittings: Projectors and AV Equipment, Shelving, Artwork, Photo frames.
- Electrical and lighting: Light fittings, changes to data or power points.
- Carpets: New carpets or rugs.
- Walls, bulkheads and panelling: Glass or plaster partitions that were built as part of the fitout.
- Server: Changes to data or server room.
- Blinds or Window Coverings: Blinds, curtains or window decals.
- Signage: Corporate Signage or branding.
- Mechanical and Fire: Air conditioning and heating, and any reconfiguration of fire sprinklers.