Pallet racking removal at the end of a warehouse lease

Pallet racking is often the biggest single item in a warehouse make good. It is bolted into the slab, it may carry sprinklers, and almost every other job on the floor has to wait until it is gone. This page explains how racking removal works at lease end and what to ask before you sign a quote.

General information only, not legal advice. What you must do depends on the wording of your own lease. If the amount at stake is large or the landlord's demands look wrong, talk to a property lawyer.

Do I have to remove the racking at all?

Start with the lease, not the racking. Leases usually ask you to remove what you added and repair damage beyond fair wear and tear. The NSW Small Business Commission describes make good as returning premises to the condition they were first built, the condition at the start of the lease, "or some other condition as specified in the lease".

Check these documents first:

1. The make-good clause, and any clause about alterations or tenant works.
2. The landlord's consent for the racking. It may say whether the racking must come out at the end.
3. The move-in condition report or photos. The Victorian Small Business Commission recommends agreeing a condition report at the start of a lease and keeping copies. It shows whether the slab was bare or already drilled when you arrived.
4. Any landlord make-good notice or schedule. Compare it line by line with the clause.

If racking was already in the building when you moved in, it may not be yours to remove. Ask the landlord in writing.

Can I leave the racking for the next tenant?

Sometimes, and it can save a lot of work. Good racking is useful to many warehouse users, and an incoming tenant may want it. Leaving it in place can also mean no anchor holes to fill.

Never rely on a verbal "that's fine". Get a written agreement from the landlord that lists:

• the bays or runs that stay, ideally on a floor plan;
• their condition, with dated photos;
• any in-rack sprinklers or other services connected to them;
• that the racking will not be raised as a make-good item later.

If the landlord says no, ask whether only some runs must come out. Partial removal is sometimes agreed.

What order is racking dismantled in?

Racking usually comes out first in a warehouse make good, because floor repairs, sprinkler changes and line-marking removal cannot start until the floor is clear. A typical sequence:

1. Clear all stock and pallets. Plan when stock and forklifts leave. Most make-good work cannot start until the floor is clear.
2. Deal with in-rack sprinklers (see below), before any racking comes down.
3. Remove accessories: mesh decks, pallet supports, row spacers, signs, column guards and end-of-aisle barriers.
4. Remove the beams, working down from the top.
5. Take down the frames, then unbolt or cut the base plates.
6. Remove from site, sorted for resale, storage, reuse or scrap.
7. Remove or cut the anchors and fill the holes (see below).

Ask the contractor to describe their own sequence and how they keep frames stable while beams are removed.

What about in-rack sprinklers?

Some high-bay warehouses have sprinklers inside the racking, fed from the building's main sprinkler system. They have to be dealt with before or during dismantling, and the base system must keep working.

• The building's fire systems are normally the landlord's, so the landlord or their fire services contractor will usually want to approve or carry out the work.
• In Victoria, the permit exemption for alterations in Schedule 3 of the Building Regulations 2018 does not apply to work that relates to or affects an essential safety measure. Sprinkler systems are a common example, so ask a building surveyor whether your sprinkler changes need a permit. In NSW, ask a certifier or your council.
• Ask for written confirmation that the system was left working.

Fire services contractors can have long lead times, so book them early. Our warehouse make-good checklist puts this 6 to 9 months before the lease ends.

How are anchors removed and the holes repaired?

Each base plate is fixed to the slab with anchors. Once the frames are gone, the anchors are usually:

• cut or ground flush with the slab, or
• drilled out, leaving a clean hole.

The holes are then filled with a cementitious or epoxy repair mortar and finished level with the slab.

Repaired holes often look different from the surrounding concrete. If the lease asks for a finish that matches the floor, or the landlord expects an even appearance, agree the method and the look before work starts. Our warehouse floor restoration page covers patching, grinding and colour mismatch in more detail.

Check every racking quote says whether anchor removal and hole repair are included. Some racking dismantlers leave the floor to a separate concrete repairer.

Should the racking be resold, reused or scrapped?

Decide this before you ask for quotes, because it changes the price.

• Resale. Some contractors buy used racking or sell it on. Whether yours has value depends on condition, brand, size and quantity.
• Reuse. If your business is moving to another site, you may be able to take it with you. Plan transport and storage.
• Scrap. Steel racking can go to a metal recycler.
• Leave it. See the written agreement above.

Ask each quote to show any credit for resale or scrap as a separate line, so you can compare quotes fairly.

How is traffic managed while the site is still operating?

Many tenants are still picking and dispatching while racking comes down in another part of the building. That mix of forklifts, trucks, people and falling components needs planning.

Ask the contractor how they will:

• separate the work zone from live aisles, docks and pedestrian walkways;
• control forklift and truck movements near the work area, including who has right of way;
• stage and remove materials without blocking docks or fire exits;
• sequence the work so the areas you still need stay safe and usable.

Agree the plan in writing with the contractor and your site manager. If other tenants share the yard or driveway, tell the landlord or building manager.

Is any electrical work involved?

Sometimes. Racking can carry lighting, power or data. That work must be done by licensed people. In Victoria, a person must not carry out prescribed electrical work unless they hold the right licence (Electricity Safety Act 1998, s 38). The NSW Government says you must hold an electrical licence or certificate to do any electrical wiring work in NSW. Ask for the electrician's licence number on the quote.

What should I ask in a racking removal quote?

Get two or three itemised quotes against the same scope, from contractors who have inspected the site. Ask each one to show:

• the runs and bays included, ideally marked on a floor plan;
• who deals with in-rack sprinklers, and whether that is in the price or excluded;
• anchor removal and hole repair, and the finish they will leave;
• any credit for resale or scrap;
• waste removal and disposal;
• traffic management and how they will work around your operation;
• licences for any electrical or fire services work, and insurance;
• the program, exclusions, provisional sums and GST.

How much does racking removal cost?

We do not publish a price per bay or per square metre. When we searched in October 2026, we found no free, published Australian source for racking removal or anchor-hole repair rates.

What drives the cost:

• How much racking there is, how high it is, and how it is fixed.
• In-rack sprinklers and other services attached to it.
• What the lease says about the floor. Filling anchor holes is very different from regrinding a large slab.
• Access and timing, including working around a live operation.
• Resale value, or leaving it for the next tenant.

Melbourne and Sydney industrial areas

Racking removal is common in industrial areas such as Dandenong, Truganina and Laverton in Melbourne, and Eastern Creek, Silverwater and Alexandria in Sydney. See warehouse make good in Melbourne and warehouse make good in Sydney for local detail.

If your site also has a mezzanine, office pod or cool room, see mezzanine and cool room removal.

How MAKE GREAT helps with racking removal

1. Tell us about the site. Upload the lease, any landlord notice, a floor plan and photos of the racking.
2. Lease check. Our lease check reads the make-good clause and drafts a preliminary list of likely works. It is a starting point only: a person at MAKE GREAT reviews it, and a contractor must confirm the scope on site.
3. We send a structured brief to independent industrial contractors we have checked (ABN, insurance, and licences for trades that need them; see how we vet contractors) in your area.
4. Compare itemised quotes side by side against the same scope, and choose who you want. 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 Check my lease, free to upload your lease and the landlord's make-good list.