Commercial strip out in Sydney

A commercial strip out removes what the tenant added: partitions and glass offices, joinery, kitchens, raised floors, carpet tiles, extra lights, data and power, signage, and in warehouses, racking, mezzanines, cool rooms and office pods. In Sydney, the hard parts are rarely the demolition itself. They are knowing how far the lease makes you go, sorting asbestos and approvals before the clock runs down, and working within the rules of the building, whether that is a CBD or North Sydney tower, a Macquarie Park business park, or a warehouse in Alexandria, Mascot or Eastern Creek.

This page sets out the NSW checks in plain English, then what a comparable quote should look like.

General information only. This page is not legal advice. Your lease decides what you must do. For advice, speak to a lawyer, or to the NSW Small Business Commission if you have a retail lease.

What does "strip out" mean in a Sydney lease?

Make good is a contract obligation, so the words in your lease decide the job. The NSW Small Business Commission's Retail Tenancy Guide describes make good as returning premises to the condition when first built, the condition at the start of the lease, "or some other condition as specified in the lease". It also says make-good provisions typically require the premises back "in an empty and neutral state", which can mean stripping back to the bare shell and redecorating, even if the space was fitted out when you arrived.

Look for these words in your lease and what they usually mean on site:

The NSW guide's glossary notes that cold-shell and warm-shell terms can include taking services back to capped points and installing hoarding. Those items cost money, so check whether they are in your lease before they appear in a quote.

If the clause is hard to follow, MAKE GREAT's Analyse my lease tool finds the make-good clause and sort what it says into: clearly required, needs clarifying, and not established by your documents. The result is preliminary, not legal advice, and a person reviews unclear or high-risk clauses.

What are the asbestos rules for a strip out in NSW?

Older buildings and fit-outs may contain asbestos, for example in wall sheeting, floor tiles or pipe lagging. SafeWork NSW sets out the rules:

• Asbestos register. Required for workplaces built before 31 December 2003, or where asbestos has been identified. Ask your landlord or building manager for it on day one.
• Friable asbestos (crumbly, easily turned to dust): a friable asbestos removal licence is needed to remove any amount, and a nominated supervisor must be present.
• Non-friable asbestos (bonded, such as fibre-cement sheet): a non-friable licence is needed to remove more than 10 m².

These rules sit under the NSW work health and safety laws. The Work Health and Safety Regulation 2025 has replaced the 2017 Regulation, and some guidance still refers to the old one, so check SafeWork NSW for the current position rather than relying on older guides.

In practice: if the register shows asbestos where work will happen, get a licensed removalist's price as part of the strip-out quote, and keep the clearance and disposal paperwork for your handover file.

Do I need approval or a demolition licence?

Here is what we can say with confidence, and what you need to confirm for your own job:

• Planning approval. Under the NSW Codes SEPP, some low-impact works can proceed as exempt development (no approval needed) and some straightforward works can be approved as complying development by a certifier. Conditions apply, and work touching fire safety, structure or heritage items can change the answer. A registered certifier or your council confirms it. Relevant councils include the City of Sydney (CBD, Alexandria), North Sydney Council, City of Parramatta, City of Ryde (Macquarie Park), Willoughby City Council (Chatswood), Bayside Council (Mascot) and Blacktown City Council (Eastern Creek).
• Demolition licences. SafeWork NSW issues demolition licences and handles demolition notifications. Whether an internal strip out needs either depends on the work, so ask contractors what they hold and whether your scope triggers one.
• Electrical. The NSW Government says you must hold an electrical licence or certificate to do any electrical wiring work, regardless of cost and whether it is residential, commercial or industrial. Disconnecting tenant circuits, removing lighting and capping back power is electrical wiring work, so it needs a licensed electrician.
• Fire services and air-conditioning. In most towers these are base-building systems. Changes usually go through the building's nominated contractors, so ask the building manager early.

What does a strip out cost in Sydney?

There is no reliable public Sydney-specific strip-out rate. The only make-good figure from a recognised firm we found is national and dated:

Source: MAKE GREAT research register (docs/research/cost-sources.md), read 28 Oct 2026, AUD. Indicative only and not a quote. Published whole-building demolition rates are a different kind of job and are not a guide to tenancy strip-out costs. See the make-good cost guide.

What moves the price in Sydney:

• Tower rules. Goods lift bookings, loading dock slots, noisy-work windows and inductions in the CBD, North Sydney and Parramatta often push work after hours.
• Fire and services. Sprinkler, fire detection and air-conditioning changes done by the building's nominated trades.
• Asbestos. Licensed removal and clearance.
• Warehouse items. Racking, anchor holes, line marking and mezzanines in Alexandria, Mascot, Silverwater or Eastern Creek.
• Waste. Volume, separation for recycling and truck movements.

What should a Sydney strip-out quote include?

Ask every contractor to price the same written scope, then check each quote for:

• Every item to be removed, tied to the lease wording (not "strip out to landlord's satisfaction")
• Asbestos: register reviewed, licensed removal included or excluded, clearance paperwork
• Approvals: exempt, complying development, consent needed, or to be confirmed by a certifier
• Licensed electrician for make-safe and disconnection
• Base-building trades for fire services and air-conditioning, and who books them
• Hoarding and capping back of services, if your lease says cold shell
• Working hours, lift and dock bookings, inductions
• Waste disposal and dockets
• Exclusions, provisional sums and GST
• Public liability insurance and a finish date before your lease ends

Should I strip out, or pay the landlord instead?

The NSW Small Business Commission notes that tenants often agree a payment to the landlord in lieu of doing the make good, leaving the landlord to do the work. It also says that if tenants don't carry out the make good, they will normally be liable for the landlord's costs.

Some leases also say a quantity surveyor decides make-good costs if the parties disagree. Check whether yours does.

A contractor quote for the exact scope in your lease gives you a real number to compare with any cash figure. Paying can make sense if the landlord plans to refit the space anyway; doing the works can make sense if the figure asked is well above a real quote. That's a commercial and legal call for you and your adviser.

What are my rights on bonds and disputes in NSW?

For retail leases, the NSW Small Business Commission's guide and NCAT say:

• A cash bond must be lodged with NSW Fair Trading within 20 business days of the landlord receiving it.
• The landlord should release a bank guarantee within two months of you leaving, unless you owe money, and usually doesn't need to tell you before drawing on it.
• Mediation is compulsory for most retail lease claims before going to NCAT. NCAT says it can hear claims up to $750,000 for leases entered into from 1 July 2017, and claims must be made within three years after the liability arose.

For non-retail offices and warehouses, the lease and general law apply. Get legal advice if the landlord is holding security over a make-good disagreement.

How MAKE GREAT helps with a Sydney strip out

MAKE GREAT is a marketplace, not a contractor. You give us the address, premises type, size and lease end date (and the lease and photos if you have them). We prepare a written scope for independent Sydney contractors to quote on, then show the quotes side by side so you can see what is and isn't included. You choose, and you contract directly with that 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.

Related pages: commercial strip out, office make good in Sydney, commercial make good in Sydney, warehouse make good in Sydney, retail make good, lease reinstatement, end-of-lease cleaning, all Sydney services and commercial strip out in Melbourne.