With fit-out and make-good costs climbing higher, more tenants are finding smart savings by taking on existing high-quality fit-outs while still securing full landlord incentives.
With office fit-out costs now averaging $3,220 per square metre in Australia (JLL Global Office Fit-Out Cost Guide 2025), businesses are looking for ways to reduce occupancy expenses without compromising on workplace quality. One increasingly attractive option is to take up a space with a high-quality existing fit-out.
Why existing fit-outs offer excellent value
Traditionally, tenants expected to receive a bare floor and use their landlord incentive to fund a new fit-out. Today, more landlords are retaining premium existing fit-outs and offering them to incoming tenants together with a full market incentive.
For tenants, this creates a unique double saving:
- You get the benefit of a ready-to-use fit-out.
- You still receive the landlord’s incentive, which can be directed toward rent relief, upgrades, or refreshing the existing finishes.
Reducing costs at lease end too
The savings don’t stop at the start of your lease. Make-good obligations – the requirement to strip out and restore the space – are also becoming more expensive, averaging around $500 per square metre.
By negotiating to retain the existing fit-out and waive make-good requirements, tenants can save significantly at both the beginning and the end of their lease term.
Smart ways to use the incentive
Even with a high-quality fit-out in place, tenants can still tailor the space by:
- Refreshing finishes and fittings in front-of-house areas (the most expensive part of a fit-out).
- Upgrading technology, AV and furniture to align with brand and employee needs.
- Allocating part of the incentive to sustainability upgrades or flexible work zones.
The bottom line
In a market where fit-out and make-good costs are rising steeply, leveraging an existing fit-out is one of the smartest ways to save. You avoid major upfront capital outlay, reduce end-of-lease liabilities, and still secure a workplace that supports your business needs.
For tenants, this strategy means less money spent on construction and more value captured across the life of your lease.
