The short answer
An office make good in Sydney is the end-of-lease work your lease requires, usually removing your fit-out, repairing damage and handing back the space in the condition the lease specifies, such as base building, cold shell or warm shell. In Sydney CBD, North Sydney and Parramatta towers, building management approvals, booked loading docks and after-hours noisy works often drive the programme and cost.
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Key takeaways
- 01Your lease decides the standard. Words like 'base building', 'cold shell' and 'warm shell' mean different amounts of work, so pin down which one applies.
- 02Sydney towers usually require a building management works approval, booked dock and goods lift slots, and noisy works after hours.
- 03In NSW, any friable asbestos and more than 10 m² of non-friable asbestos must be removed by a licensed removalist, and all electrical wiring work needs a licence.
- 04For NSW retail leases, cash bonds are held by NSW Fair Trading, and the NSW Small Business Commission says bank guarantees should be released within two months unless money is owed.
- 05Paying the landlord instead of doing the works is common, but it is a negotiated deal. Get your own scope and quote before you agree a figure.
An office make good in Sydney is the work your lease requires before you hand the premises back. Sydney leases tend to describe the end state with a label, such as base building, cold shell or warm shell, and that label decides how much comes out. A warm-shell hand-back might mean removing partitions and joinery and patching. A cold-shell hand-back can mean taking out ceilings, lights and floor finishes too.
Once you know the standard, the practical side takes over: building management approvals, dock and goods lift bookings, after-hours noisy works, and NSW rules on asbestos and electrical work. This page walks through each one for Sydney offices.
This page is general information, not legal advice. For advice on your lease, speak to a lawyer.
What standard does my Sydney lease ask for?
No NSW law sets a single make-good standard. The NSW Small Business Commission describes make good as returning the premises to the condition they were first built in, to 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 premises to be returned "in an empty and neutral state", which is not always the same as the condition you moved into.
Common labels in Sydney office leases, and what they usually mean in practice:
| Lease wording | What usually comes out | What usually stays |
|---|---|---|
| Remove tenant's fit-out | Partitions, joinery, kitchens, signage, your cabling | Base-building ceiling, lights, air-conditioning, carpet if in good repair |
| Reinstate to base building | All of the above, plus anything that changed the base-building layout | Base-building finishes and services, put back to the original layout |
| Warm shell | Your fit-out | Ceilings, lights, air-conditioning; sometimes floor finishes |
| Cold shell | Your fit-out, plus ceilings, finishes and some services back to capped points | Structure and capped services |
These are rough guides only. The lease, any attached specification and the landlord's original consent to your fit-out are what count. Read our guide to what make good means and how to read a make-good clause if the wording is unclear.
How do Sydney's office markets change the job?
Sydney's offices are spread across several distinct markets, and each brings different practical problems.
- Sydney CBD (core, Midtown, Barangaroo and the western corridor). Premium and A-grade towers with tight building rules, nominated base-building contractors and loading docks shared by many tenants. Expect most noisy work after hours.
- North Sydney. A dense cluster of towers around Miller Street and the Pacific Highway, with a mix of older and recently built buildings. Older towers may have asbestos-containing materials on the register.
- Parramatta. Often called Sydney's second CBD, with a growing number of newer towers alongside older government and commercial buildings. Newer buildings tend to have better docks but equally strict approval processes.
- Macquarie Park and other business parks. Large-floorplate campus buildings, often with on-site parking and easier truck access. The scale of carpet, ceiling and lighting quantities can make these big jobs even with simple access.
- Chatswood and St Leonards. Mid- and high-rise office buildings near rail lines, often in mixed-use precincts with residential neighbours, so noise windows matter.
- Inner south (Alexandria, Surry Hills, Redfern, Mascot). Converted warehouses and creative offices with exposed ceilings and services. Access is often from the street, and a make good may involve more floor and wall repair than ceiling work.
What approvals will building management need?
Nothing starts in a managed Sydney office building until the building manager approves your works package. A typical package includes:
- Scope of works, drawings or marked-up floor plan, and programme
- Contractor insurance certificates of currency (public liability and workers compensation)
- Safe work method statements and site induction for all workers
- Dock, goods lift and after-hours access bookings, with lift protection
- Hot works permits for any cutting or welding
- Fire system isolations booked through the building's fire contractor, and confirmation that every isolation is restored at the end of each shift
- Use of the building's nominated contractors for air-conditioning, fire, building management systems and sometimes electrical
- Waste and recycling plan, and how the dock is kept clear for other tenants
Ask the building manager for the building's contractor rules early. For tower-specific detail, see our Sydney CBD make good page. Some towers require a refundable works bond or a building-appointed supervisor for after-hours work, and these costs should appear in quotes.
How do docks, lifts and CBD streets affect a Sydney make good?
Sydney CBD streets leave little room for trucks to stand. Parts of George Street are pedestrian and light rail corridors, many streets have clearways, and kerbside space is limited. So most waste and materials move through the building's loading dock in booked slots, often of fixed length, and through a single goods lift.
That has three effects on your make good:
- Programme. A full-floor strip-out may need many dock slots. If other tenants are fitting out or leaving at the same time, slots can be scarce near popular lease-expiry dates.
- Cost. After-hours labour and supervision cost more. A contractor who has not allowed for it will either price it later as a variation or struggle to finish on time.
- Permits. If a skip, crane or truck must occupy a road or footpath, the contractor usually needs a council approval, from the City of Sydney, North Sydney Council, City of Parramatta or the relevant council. The City of Sydney, for example, requires approval for a works zone where construction vehicles can stop.
What NSW rules apply to an office strip-out?
- Asbestos. SafeWork NSW says an asbestos register is required for workplaces built before 31 December 2003, or where asbestos has been identified. A friable asbestos removal licence is needed to remove any amount of friable asbestos, and a non-friable licence is needed to remove more than 10 m² of non-friable asbestos. Ask for the register before scoping, not after the ceiling comes down.
- Electrical work. The NSW Government says you must hold an electrical licence or certificate to do any electrical wiring work in NSW, whether residential, commercial or industrial, and regardless of cost. Removing or altering your fit-out's power circuits counts as electrical wiring work, which the law defines to include removing or altering an electrical installation.
- Planning approval. The NSW Department of Planning says some minor works to a shop or business can be done without a development application, as exempt development, and straightforward work may qualify as complying development under the state's Codes SEPP. Whether your strip-out qualifies depends on the building and the work. If the strip-out touches fire-rated walls, exits or fire safety measures, have a registered certifier confirm the pathway first.
How much does an office make good cost in Sydney?
There is no reliable, current public make-good rate for Sydney offices. The best-known published figure is national and dated:
| Figure | What it covers | Source and date |
|---|---|---|
| $456/m² average | Removing custom fittings, repainting and minor repairs, national average | JLL Australia Fit-Out Cost Guide 2022/23 (newsroom, Feb 2023) |
Source: docs/research/cost-sources.md (S1), read 28 October 2026. A single national average, now several years old, with no Sydney split. Indicative only, not a quote.
Sydney-specific factors that move the price:
- After-hours work and building-appointed supervision in CBD and North Sydney towers
- Nominated base-building contractors for air-conditioning, fire and controls
- Whether the lease asks for cold shell (more work) or warm shell (less)
- Dock slot limits stretching the programme
- Asbestos in older buildings
A scope based on your actual lease and quotes from contractors who have inspected the floor are the only reliable numbers. See the make good cost guide for how to compare them.
How do bonds and bank guarantees work in NSW?
The NSW rules below come from the NSW Small Business Commission's Retail Tenancy Guide and apply to retail leases under the Retail Leases Act 1994 (NSW):
- A cash bond taken by the lessor must be lodged with NSW Fair Trading within 20 business days of receipt, and it is held in trust by the NSW Government.
- A bank guarantee should be released by the lessor within two months of the lessee leaving the premises, unless money is owed. The lessor is usually not required to tell the lessee before drawing on it.
Most office leases are not retail leases, so the lease itself sets when security is returned. Either way, get the landlord's written acceptance of the make good, then request release of the bond or guarantee in writing.
Can I pay instead of doing the works?
Often, yes. The NSW Small Business Commission says lessees "often agree to a payment to the lessor in lieu" of make good, leaving the lessor to do the work. It also says that if lessees do not carry out the make good, they will normally be liable for the lessor's costs.
NSW also has a long-standing rule in section 133A of the Conveyancing Act 1919. As quoted by the High Court in 1943, it limits damages for breach of a covenant to leave premises in repair to the drop in value of the landlord's interest, and allows none where the premises would be pulled down or structurally altered at or soon after the lease ends. Whether it helps you depends on the lease and the current wording of the Act, so ask a lawyer before relying on it.
Before agreeing any figure, get your own scope and contractor quote. Read payment in lieu of make good for how to compare the two options.
What if we cannot agree?
For retail leases, NCAT says mediation is compulsory for most retail lease claims before you apply to the tribunal. Applications for mediation through the NSW Small Business Commission can be made at no charge, and if a session goes ahead the parties share the mediator's fee. NCAT can hear retail lease claims up to $750,000 for leases entered into on or after 1 July 2017, generally within three years of the liability arising (Source: NCAT, Retail leases).
For office leases that are not retail, disputes are usually settled by negotiation or through the courts. A lawyer can advise on your position.
How MAKE GREAT helps with a Sydney office make good
MAKE GREAT is a marketplace. We do not do the works and we do not give legal advice.
- Start a project with the address, approximate size and lease end date.
- Upload your lease if you have it. Our lease check picks out the make-good, reinstatement and fit-out clauses and shows which requirements are clear, which need clarifying and what the documents do not cover. It is preliminary, and a person reviews unclear or high-risk findings. It is not legal advice.
- We match you with up to three independent contractors who work in your area and suit your building. If fewer than three are eligible, we say so.
- Compare quotes like for like: inclusions, exclusions, after-hours allowances, nominated-contractor costs and programme. You choose and 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. Read how contractors are vetted.
Also leaving premises in Melbourne? See office make good in Melbourne. For the full picture, start at office make good or the Sydney hub, and work through the office make good checklist before you sign anything.
Make-good services in Sydney
Sydney areas we cover
- AlexandriaMake good in Alexandria
- ChatswoodMake good in Chatswood
- Eastern CreekMake good in Eastern Creek
- Macquarie ParkMake good in Macquarie Park
- MascotMake good in Mascot
- North SydneyMake good in North Sydney
- ParramattaMake good in Parramatta
- SilverwaterMake good in Silverwater
- Sydney CBDMake good in the Sydney CBD
Frequently asked questions
What is the difference between cold shell and warm shell in a Sydney office lease?
The terms are not defined by law, so the lease and any attached specification decide. As a rough guide, cold shell usually means stripping back close to bare structure with services capped, while warm shell usually means leaving base-building ceilings, lights, air-conditioning and sometimes floor finishes in place. The NSW Small Business Commission notes these terms can mean taking services back to capped points and installing hoarding.
Do I need council approval to strip out an office in Sydney?
Possibly not. NSW allows some minor works to business premises to be done as exempt or complying development under the state's Codes SEPP, but it depends on the building and the work. Removing fire-rated walls, changing exits or affecting fire safety measures needs closer checking. Ask a registered certifier before works start.
Who can remove asbestos found during a Sydney office make good?
SafeWork NSW says a friable asbestos removal licence is needed to remove any amount of friable asbestos, and a non-friable licence is needed to remove more than 10 m² of non-friable asbestos. Workplaces built before 31 December 2003 must have an asbestos register, so ask building management for it before the scope is finalised.
How long does my landlord have to return my bank guarantee in NSW?
For retail leases, the NSW Small Business Commission says the lessor should release the bank guarantee within two months of the lessee leaving unless money is owed. For office leases that are not retail leases, the lease sets the timing. Ask for release in writing once the landlord confirms the make good is accepted.
Can I pay the landlord instead of doing the make good in Sydney?
Yes, if the landlord agrees. The NSW Small Business Commission says lessees often agree a payment in lieu of make good, leaving the lessor to do the works. There is no set formula, so get an independent scope and quote first to know what the works would actually involve.
Where do Sydney make-good disputes go?
For retail leases, mediation through the NSW Small Business Commission is compulsory for most claims before you can apply to NCAT, which can hear claims up to $750,000 for leases entered into from 1 July 2017. Office leases that are not retail usually go through negotiation and then the courts. Get legal advice before taking either step.
Sources
Primary sources we checked when writing this page. Laws and guidance change, so check the current version.
- 1.NSW Small Business Commission, NSW Retail Tenancy Guide (Jan 2024) (opens in a new tab)
- 2.NSW Small Business Commission, Make good and retail leases (opens in a new tab)
- 3.SafeWork NSW, Asbestos (opens in a new tab)
- 4.NSW Government, Electrical licences (opens in a new tab)
- 5.NCAT, Retail leases (opens in a new tab)
- 6.Retail Leases Act 1994 (NSW) (opens in a new tab)
- 7.High Court of Australia, Graham v The Markets Hotel Pty Ltd [1943] HCA 8 (opens in a new tab)
- 8.Conveyancing Act 1919 (NSW) (opens in a new tab)
- 9.NSW Department of Planning, Exempt and complying development policy (opens in a new tab)
- 10.City of Sydney, Get approval for a works zone (opens in a new tab)
- 11.JLL newsroom, Australia Fit-Out Cost Guide 2022/23 (make-good average) (opens in a new tab)