Commercial Strip-Out at Lease End: Melbourne & Sydney

The short answer

A commercial strip-out is the removal of a tenant's fit-out from an office, shop or industrial unit: partitions, joinery, ceilings, floor coverings, signage and tenant-added services, with the waste taken away and services made safe. At the end of a lease it is usually the first stage of a make good, followed by any repairs, reinstatement of base-building finishes and a final clean.

Last reviewed 28 October 2026

Key takeaways

01A strip-out removes the fit-out; it is not the whole make good. Check your lease for what must be repaired, reinstated and cleaned afterwards.
02Decide how far back to strip before you get quotes: a soft strip, a strip to base building, or a strip to shell. These are very different jobs.
03Asbestos checks, licensed electricians for make-safe work and, in some cases, a building permit can apply to a strip-out.
04Office towers and shopping centres have their own rules about hours, loading docks, lifts and paperwork, and these affect the price and program.
05Public strip-out prices are thin and inconsistent. Treat any published range as a rough guide and rely on itemised quotes after a site visit.

A commercial strip-out removes a tenant's fit-out from a building. At the end of a lease, it is usually the first stage of a make good: the walls, ceilings, joinery, carpet and added services come out, the waste goes away, and what is left is closer to the building the landlord originally handed over.

General information only, not legal advice. How much you must strip out depends on your own lease. If you are unsure, or the landlord is asking for more than you expected, get advice from a property lawyer.

What is included in a commercial strip-out?

A strip-out takes out whatever the tenant added. In a typical office or shop, that means:

Partitions and walls added by the tenant, including glazed office fronts and doors
Joinery: kitchens, reception desks, storage, shelving and display units
Ceilings: tenant-installed ceilings, bulkheads and feature ceilings (sometimes the base-building ceiling grid as well, if it was altered)
Floor coverings: carpet, vinyl, timber and raised floors
Services the tenant added: extra power and data cabling, lights, air-conditioning changes, plumbing to tea points and bathrooms
Signage, including shopfront and building signage
Waste removal, sorted for recycling where possible

The building's structure, base-building services (such as the main air-conditioning plant, fire systems and switchboards) and anything the landlord provided usually stay. If unsure what is yours, check the lease, condition report and landlord consents.

Strip-out, demolition, make good: what is the difference?

These words are often mixed up, which matters when reading quotes.

Term	What it means in practice	Typical end result
Soft strip-out	Remove non-structural fit-out: furniture, carpet, ceiling tiles, partitions, joinery	An empty tenancy with the building's walls, slab and services intact
Strip to base building	Remove all tenant works and return services to the base-building layout	The space looks as it did before any tenant fit-out
Strip to shell ("cold shell")	Remove almost everything back to the structure, with services cut back to capped points	Bare concrete, exposed services, sometimes hoarding at the front
Make good	Whatever the lease requires at lease end: often strip-out plus repairs, reinstatement, repainting and cleaning	Depends on the lease clause
Demolition	Taking down a whole building or structural parts of it	A different job, usually needing permits and a demolition contractor

The NSW Small Business Commission's glossary notes that "cold shell" or "warm shell" wording in a lease can mean taking services back to capped points and installing hoarding. If your lease uses those words, the strip-out goes further than a soft strip. Our lease reinstatement page explains what usually follows the strip-out.

How far back do I need to strip?

Settle this before anyone quotes. With the lease in front of you, ask:

What does the make-good clause say? Look for phrases like "original condition", "base building", "condition at the commencement date", "remove all tenant's fixtures and fittings" or "cold shell".
What did the space look like when you moved in? If you took over an existing fit-out from a previous tenant, the lease may still require you to remove it, or it may not. The condition report and any handover documents will help.
Has the landlord said in writing that anything can stay? Landlords sometimes want good partitions, kitchens or ceilings left for the next tenant. If so, get that agreed in writing before the strip-out starts.
Is there a landlord's make-good notice or schedule? If the landlord has listed works, compare it with the clause. Anything on the schedule that the lease does not require is worth discussing before you pay for it.

What safety and permit checks apply to a strip-out?

A strip-out can count as building work, and several rules can apply. The detail depends on your state, the building and how much is being removed.

Asbestos

Buildings constructed before asbestos was banned at the end of 2003 can contain it in ceilings, wall linings, floor tiles, adhesives, switchboards and pipe lagging. In Victoria, before refurbishment or demolition work, the person who manages or controls the workplace must review the asbestos register and update it if it is not adequate for the work (OHS Regulations 2017, regs 240 and 241). Asbestos likely to be disturbed must be identified and, for refurbishment, removed so far as reasonably practicable (reg 244).

SafeWork NSW says an asbestos register is required for workplaces built before 31 December 2003, or where asbestos has been identified. In both states, removing any amount of friable asbestos needs a Class A (friable) licence. Removing more than 10 m² of non-friable asbestos needs a licence too. In Victoria, a licence is also needed if the removal work takes more than one hour in any 7-day period, even under 10 m² (reg 250).

Ask the landlord or building manager for the asbestos register before you get quotes, and give it to every contractor.

Electrical make-safe

Removing tenant power, lighting and data means cables have to be disconnected and made safe back to the board. In Victoria, a person must not carry out prescribed electrical work unless licensed for it (Electricity Safety Act 1998, s 38). The NSW Government says an electrical licence or certificate is needed for any electrical wiring work, whether residential, commercial or industrial. Make sure the strip-out quote names the licensed electrician who will do this work.

Building permits

In Victoria, "building work" under the Building Act 1993 includes demolition, and building work generally needs a building permit (s 16). Schedule 3 of the Building Regulations 2018 (reg 23) exempts some alterations to commercial buildings from needing a permit, but only if the work does not affect structure, does not change floor area or height, does not affect public or occupant safety, is not on a heritage-registered building and does not relate to or affect an essential safety measure (such as fire systems and exits). A building surveyor can confirm whether your strip-out is exempt.

In NSW, some internal commercial alterations may be exempt or complying development under the state planning codes, but the conditions are specific. Ask a certifier or your council before demolishing anything beyond loose fit-out.

Fire services

If the strip-out touches sprinklers, smoke detectors, emergency lighting, exit signs or fire walls, the building's fire services contractor normally needs to be involved and the systems must be left working. These belong to the building, so expect the landlord or building manager to control this part.

What are the building rules in office towers and shopping centres?

CBD office towers and shopping centres usually have building rules that shape how a strip-out runs. Ask the building or centre manager for them early.

Common requirements include:

Hours. Noisy and dusty work may be limited to nights or weekends.
Loading docks and goods lifts. These often need to be booked, sometimes with time limits per booking.
Protection. Lift cars, corridors and common areas must be protected, and damage repaired.
Paperwork. Insurance certificates, safe work method statements, induction of every worker, and permits to work for hot work or fire system isolations.
Shopfronts. In shopping centres, hoarding across the shopfront is often required while work happens.

In Victorian shopping centres, the Retail Leases Act 2003 (s 30) sets rules when a tenant pays for changes to centre services such as sprinklers, power or air-conditioning ducts to enable a fit-out: the landlord engages or approves the trades, and a maximum cost or a basis for working it out is agreed in writing first. That section is about fitting out, not end-of-lease strip-out, so check your lease for how strip-out work on centre services is handled. If you lease in a shopping centre, see our retail make good page.

How long does a commercial strip-out take?

It depends on the size of the space, how far back you are stripping, and the building's working hours. A small shop or office soft strip can take a few days. A large office floor in a CBD tower with after-hours restrictions, or a strip to shell, can take several weeks. Permits, asbestos work and fire services isolations can add lead time before work starts.

Leave time for repairs, cleaning and the final inspection before the lease ends.

How much does a commercial strip-out cost?

Good public data on strip-out prices is thin. These are the only published figures we found that relate to strip-out or make good, with how much weight we would put on them:

Source and date	Figure	What it covers	Our view
JLL Australia Fit-Out Cost Guide 2022/23 (newsroom, 15 Feb 2023)	Average $456 per m², GST not stated	Office make good: removing custom fittings, repainting and minor repairs, national average	Credible source, but a single average from data that is now several years old
The Quote Yard, Shopfitting Services SA (published 20 Sep 2026, read 28 Oct 2026)	$80 to $250 per m², GST not stated	Strip-out of an existing retail fit-out, South Australia; the page calls it an indicative estimate	Marketing content, no method shown, a different state

Both are indicative only. Neither figure is a quote, and neither tells you what your job will cost. Prices depend on:

how much is being removed and how far back (soft strip versus shell)
after-hours work and building access rules
asbestos or other hazardous materials
how much can be recycled or resold
whether the price also includes reinstatement, repairs and cleaning

The reliable way to get a number is two or three itemised quotes from contractors who have inspected the space, all quoting the same scope. See our office make good page for more on office costs.

Strip-out for warehouses and industrial units

Industrial strip-outs involve racking, mezzanines, dock equipment and floor marking. See our warehouse make good page.

What should be in a strip-out quote?

When comparing quotes, check that each one clearly states:

The exact scope, item by item, and how far back each area will be stripped
Whether waste removal and disposal are included, and how waste will be sorted
Who does the electrical make-safe, with a licence number
How asbestos will be handled if it is found
Working hours and any after-hours charges
Protection of common areas and lifts
Exclusions (things the price does not cover), such as repairs, painting, reinstating ceilings or cleaning
Insurance details and how long the price is valid

If two quotes cover different scopes, the cheaper one may simply be leaving work out.

How MAKE GREAT helps with a commercial strip-out

Tell us about the space. Upload the lease, any landlord notice, floor plans, photos and building rules if you have them.
Lease check. Our lease check reads the make-good clause and drafts a preliminary scope, including how far back the strip-out may need to go. It is a starting point only: a person at MAKE GREAT reviews it, and contractors confirm the scope on site.
We send one structured brief to independent strip-out and make-good contractors we have checked (ABN, insurance, and licences for trades that need them; see how we vet contractors) in Melbourne or Sydney.
Compare itemised quotes against the same scope, and choose who to engage. You contract directly with the contractor.

How we are paid: Free for tenants. If you hire a contractor through us, they pay us a referral fee. Nobody can pay to rank higher. You are never obliged to accept a quote.

Ready to start? Use Get my make-good quotes to send us your site details, or Analyse my lease to have the make-good clause read first.

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General information only, not legal advice. Get advice from a property lawyer about your own lease.

Frequently asked questions

What is the difference between a strip-out and a make good?

A strip-out is removing the fit-out. A make good is everything your lease requires at the end of the tenancy, which can include the strip-out plus repairs, reinstating base-building ceilings, lights and floors, repainting and cleaning. Some leases only need a light strip-out; others need a full reinstatement afterwards.

What is a soft strip-out?

A soft strip-out removes non-structural items such as furniture, carpet, ceiling tiles, partitions, joinery and loose services, without touching the building's structure. Many office and shop leases need at least this at lease end, but your make-good clause decides whether you must go further.

Does a commercial strip-out need a permit?

Sometimes. In Victoria, demolition is building work and generally needs a building permit, but some internal alterations to commercial buildings are exempt if they do not affect structure, safety, essential safety measures or a heritage-listed building. In NSW some internal alterations can be exempt or complying development. Ask a building surveyor or certifier before work starts.

Do I need an asbestos check before a strip-out?

Before refurbishment or demolition work, the person who manages or controls the workplace must check the asbestos register and update it if needed. SafeWork NSW says a register is required for workplaces built before 31 December 2003 or where asbestos has been found. Ask the landlord or building manager for the register early.

Can a strip-out be done after hours?

Yes. CBD office towers and shopping centres often require noisy work to be done outside trading or business hours. After-hours work, loading-dock bookings and lift protection all add cost, so tell contractors about building rules before they quote.

What happens to the waste from a strip-out?

Materials such as metal stud, steel, glass, timber and some carpet tiles can often be recycled; the rest goes to landfill. Ask contractors how they separate and dispose of waste, and whether they can give you a disposal or recycling report if your business or landlord needs one.

I'm a new tenant. Can I hire a strip-out contractor to remove the previous tenant's fit-out?

Yes, if the landlord agrees. Check the agreement for lease or lease to see whether the outgoing tenant or the landlord was meant to strip it, and agree in writing who pays before any work starts.

Sources

Primary sources we checked when writing this page. Laws and guidance change, so check the current version.