Spacez insight · March 2026 · 16 min read

Make Good Costs in Melbourne: What to Expect in 2026

Make good costs in Melbourne range from $100 to $500+ per sqm. Get detailed pricing, cost breakdowns, and strategies to reduce your end-of-lease obligations.…

Make good costs in Melbourne are one of the most overlooked expenses in commercial leasing. Every year, we see tenants blindsided by five-figure bills in the final months of their lease because they never budgeted for their make good obligations. Whether you are vacating a 60-square-metre office in the CBD or a 500-square-metre retail space in the suburbs, understanding what make good costs look like in 2026 helps you plan ahead and avoid costly surprises.

This guide breaks down the real numbers, covers what drives costs up or down, and shares practical strategies that have saved our clients thousands of dollars over the past 15 years of delivering make good and strip out services across Melbourne.

What Is a Make Good? A Quick Recap

A make good is the contractual requirement to restore your commercial premises to its original condition — or an agreed baseline condition — at the end of your lease. Your lease agreement spells out exactly what needs to happen, and in most cases, the make good clause requires you to return the space to its condition at the time you took possession.

In practice, this means removing all tenant improvements, fixtures, and fittings you installed during your tenancy. Depending on what you changed, the scope can range from a simple repaint and carpet clean through to a full demolition strip out including removal of partitions, floor coverings, supplementary air conditioning, cabling, and even structural modifications.

If you are not sure what your lease requires, our make good requirements guide walks you through the standard clauses found in Victorian commercial leases and explains your obligations in plain English.

The key point: your make good obligation is not optional. Under Victorian commercial lease law, landlords have the right to enforce these clauses, and disputes that escalate to VCAT (the Victorian Civil and Administrative Tribunal) typically favour landlords when the lease terms are clear. Getting ahead of your obligations early is always cheaper than fighting them later.

Make Good Costs by Space Size

Make good costs in Melbourne vary significantly based on the size of your premises, the extent of modifications made during your tenancy, and the specific requirements in your lease. Below are the realistic cost ranges we see across Melbourne in 2026.

Small Office (50–100 sqm)

Typical cost: $5,000 to $18,000

Small offices usually require light-touch make good works: repainting, patching wall damage, carpet cleaning or replacement, removing a small number of data cables, and a professional clean. If you have added a partition wall or two, expect to add $1,500 to $3,000 for removal and wall restoration.

The cost per square metre for small offices typically sits between $100 and $180 per sqm, though it can be lower if the space was well maintained and minimal modifications were made.

Medium Office (100–300 sqm)

Typical cost: $15,000 to $60,000

Medium offices are where costs start to escalate. At this size, tenancies often involve more substantial fit outs — multiple partitioned offices, a boardroom, kitchen or breakout area, supplementary lighting, and extensive data cabling. Removing all of this and restoring the space to its base building condition adds up quickly.

Expect to pay between $150 and $250 per sqm for a medium office make good, depending on the complexity of the strip out and the condition of the base building elements underneath your fitout.

Large Commercial Space (300–1,000+ sqm)

Typical cost: $50,000 to $250,000+

Large commercial spaces involve the most complex make good works. Full strip outs at this scale typically include demolition of extensive partition systems, removal of all floor coverings, ceiling tile replacement across large areas, mechanical services restoration (HVAC modifications reversed), fire services reinstatement, and comprehensive electrical restoration.

The cost per square metre for large spaces generally ranges from $150 to $350 per sqm, though heavily modified spaces — particularly those with supplementary mechanical systems, server rooms, or specialised infrastructure — can push well above $400 per sqm.

Summary: Make Good Costs by Space Size

These are 2026 Melbourne market rates based on our recent project experience. Actual costs depend on the specific scope of works, which brings us to the detailed cost breakdown by work type.

Detailed Cost Breakdown by Work Type

Understanding where your money goes helps you budget accurately and identify areas where savings might be possible. Here is a detailed breakdown of common make good works and their current pricing in Melbourne.

Demolition and Partition Removal

Partition removal is often the single largest line item in a make good scope. The cost depends heavily on the construction type — lightweight plasterboard is quick and easy to demolish, while glass partitions with aluminium framing require more careful handling, and solid blockwork walls need specialist demolition.

Floor Covering Removal and Restoration

If your lease requires replacement floor coverings rather than just removal, the costs increase substantially. Many Melbourne CBD building managers specify a particular carpet tile brand and colour for consistency across tenancies, which limits your options.

Painting and Wall Restoration

Repainting is required in virtually every make good scope. Costs vary depending on the surface condition — if walls have been heavily damaged by signage, fixtures, or adhesive residue, preparation work adds to the cost. Most Melbourne building managers specify a particular shade of white (typically Dulux Natural White or similar) for consistency.

Ceiling Works

Suspended ceiling tiles are easily damaged during a tenancy, and many landlords require full replacement rather than spot repairs. If you modified the ceiling grid to accommodate partitions, lighting, or air conditioning diffusers, the grid itself may also need repair or replacement.

Electrical, Data, and Mechanical Services

Electrical and mechanical services can be a significant cost driver, especially if you installed supplementary air conditioning, modified the base building HVAC system, or added extensive data and power infrastructure. Fire services reinstatement — including sprinkler head repositioning and fire panel modifications — is another cost that catches tenants off guard.

Other Common Works

Do not underestimate waste removal costs. Large strip outs generate a significant volume of demolition waste, and Melbourne landfill levies have increased substantially in recent years. Recycling where possible — particularly metals, glass, and clean timber — can help reduce disposal costs.

Factors That Affect Make Good Costs in Melbourne

Several factors beyond the raw scope of works influence your final make good costs.

Extent of tenant modifications. The more you changed during your tenancy, the more it costs to undo. A tenancy with a few partition walls and standard cabling will cost a fraction of one with a custom reception area, server room, supplementary air conditioning, and extensive joinery.

Lease clause specificity. Some leases require restoration to the "original condition" documented in a condition report. Others require restoration to "base building standard," which can be a different (and sometimes more expensive) benchmark. Review your lease carefully — the wording matters.

Building management requirements. Melbourne CBD buildings often have strict protocols around make good works, including required working hours (often after 6pm or on weekends), noise restrictions, goods lift booking requirements, and specific insurance certificates. These requirements can add 10–20% to your costs through after-hours labour rates and scheduling constraints.

Timing and market demand. Make good works tend to cluster around common lease expiry periods — particularly the end of financial year (June) and calendar year (December). Booking your make good during peak periods can mean higher prices and longer lead times. Planning ahead and scheduling during quieter periods can save you money.

Age and condition of the base building. Older Melbourne buildings may present challenges when stripping back to the base building condition, particularly if the original finishes have deteriorated or asbestos-containing materials are present. Asbestos removal is a specialist activity that adds significant cost — typically $50 to $150 per square metre depending on the type and extent.

Access and logistics. Multi-storey buildings with limited goods lift access, narrow corridors, or heritage restrictions add time and cost to the project. Ground-floor tenancies with direct street access are generally cheaper to strip out.

How to Reduce Your Make Good Costs

Smart tenants can significantly reduce their make good costs through negotiation, planning, and strategic thinking. Here are proven strategies we have seen work repeatedly for our clients.

Start Negotiations Early

Begin discussions with your landlord 6 to 12 months before your lease expires. Early engagement gives you time to negotiate and explore alternatives. Landlords who know in advance that a tenancy is ending are more likely to be flexible than those hit with a last-minute departure.

Negotiate a Cash Settlement

Many landlords prefer a cash payment in lieu of physical make good works, particularly if they plan to refurbish the space for the next tenant anyway. A cash settlement can save both parties money — the landlord avoids managing the make good process, and you avoid the full cost of physical restoration.

Cash settlements are commonly negotiated at 50–80% of the estimated physical make good cost. For a make good scope estimated at $80,000, a cash settlement of $40,000 to $65,000 is not unusual if the landlord intends to renovate regardless.

Explore Incoming Tenant Arrangements

If a new tenant has been secured for your space, find out whether they can use any of your existing fitout. In many cases, the incoming tenant is happy to take over partitions, floor coverings, lighting, and even furniture. This can dramatically reduce your make good scope — sometimes eliminating it almost entirely.

We have seen tenants save $50,000 or more by facilitating a direct agreement between themselves, the landlord, and the incoming tenant. It requires coordination, but the savings are substantial.

Get a Professional Assessment Before Committing

Before agreeing to any scope of works, have a make good specialist assess the space and provide a detailed, itemised scope. This prevents you from over-spending on works that may not actually be required under your lease.

We frequently find that landlords or their agents request works that go beyond the lease requirements. A professional assessment identifies what is genuinely required and gives you a basis for pushing back on excessive demands.

Compare Multiple Quotes

Get at least three quotes from experienced make good contractors in Melbourne. Ensure each quote covers the same scope of works so you can compare fairly. Be wary of quotes that are dramatically lower than others — they may exclude critical items like waste removal, building management fees, or compliance documentation.

Document Everything From Day One

If you are at the start of a new lease, photograph and video the premises thoroughly before making any changes. This condition report is invaluable evidence when negotiating your make good scope at the end of your tenancy. Without documentation, disputes about the original condition become your word against the landlord's.

Timeline and Scheduling for Make Good Works

Proper scheduling is critical for keeping costs under control and avoiding penalties for overrunning your lease end date.

Planning lead time is the time you need before works start to complete assessments, obtain quotes, finalise the scope with your landlord, and book contractors. In Melbourne CBD buildings, you also need to allow time for building management approvals, insurance submissions, and goods lift bookings.

Key scheduling considerations:

• Most Melbourne CBD building managers require a detailed works program and risk assessment before approving make good works.
• After-hours work requirements in CBD buildings affect scheduling and cost — plan for evening or weekend crews if daytime work is restricted.
• Allow at least one week after completion for snagging, final cleaning, and landlord inspection. Most landlords will conduct a formal inspection and may request rectification of any items that do not meet the required standard.
• If you are relocating, coordinate your make good works with your office relocation timeline to avoid paying rent on two premises simultaneously.

Rushing your make good works because of poor planning almost always costs more. Contractors charge premiums for tight turnarounds, and mistakes made under time pressure lead to rework and additional expense.

Common Mistakes That Increase Make Good Costs

Over 15 years of delivering make good projects in Melbourne, we have seen the same costly mistakes repeated by tenants who did not plan ahead.

Ignoring make good clauses until the last minute. Too many tenants do not read their make good clause until the final months of their lease. By then, there is no time to negotiate, explore alternatives, or shop around for competitive quotes. Start planning at least 12 months out.

Not reading the lease carefully. The difference between "original condition" and "base building standard" can mean tens of thousands of dollars. Some leases also specify that the landlord can appoint the make good contractor — which removes your ability to negotiate on price. Know exactly what your lease says before you sign it, and definitely before it expires.

Failing to document the original condition. Without a dated condition report from the start of your tenancy, you have no evidence of what the space looked like when you moved in. This makes it very difficult to dispute a landlord's claim that you are responsible for pre-existing damage or wear and tear.

Over-scoping the works. Some tenants simply agree to whatever the landlord or building manager requests without questioning the scope. We regularly identify items in landlord-prepared scopes that exceed the lease requirements. Always have the scope independently reviewed.

Using the landlord's preferred contractor without comparing. If your lease does not mandate a specific contractor, you have the right to choose your own. Landlord-nominated contractors may not offer the most competitive pricing because they know they have a captive audience.

Neglecting waste disposal planning. Melbourne's waste disposal regulations and landfill levies mean that waste removal is a meaningful cost. Poor waste planning — including failing to segregate recyclable materials — increases disposal costs unnecessarily.

Not accounting for building management fees and requirements. Many Melbourne CBD buildings charge fees for goods lift usage, after-hours access, and building management oversight during make good works. These costs are often overlooked when budgeting and can add thousands to your final bill.

Frequently Asked Questions

How much does a make good cost per square metre in Melbourne?

Make good costs in Melbourne typically range from $100 to $350 per square metre, depending on the extent of modifications that need to be reversed and the condition requirements in your lease. Lightly modified spaces sit at the lower end, while heavily customised tenancies with mechanical services modifications, supplementary air conditioning, and extensive joinery can reach $400 to $500 per sqm or more.

Who is responsible for make good at the end of a commercial lease?

The tenant is responsible for make good works as specified in the lease agreement. This is a standard obligation in virtually all Victorian commercial leases. The landlord has the right to enforce the make good clause, and if the tenant does not complete the required works, the landlord can engage contractors to do so and recover the costs from the tenant — typically from the security bond or via legal action.

Can I negotiate my make good obligations?

Yes. Negotiation is common and often successful, particularly if you start early. Options include negotiating a reduced scope (if some of your fitout benefits the next tenant), agreeing a cash settlement in lieu of physical works, or arranging a direct handover of fitout elements to the incoming tenant. The key is starting these conversations well before your lease expiry date.

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

A make good is the overall obligation to restore the premises to its required condition. A strip out is the physical demolition and removal work that forms part of the make good process. In practice, the terms are often used interchangeably, but a make good scope may include works beyond the strip out — such as repainting, new floor coverings, and compliance documentation.

How long does a make good take in Melbourne?

Most make good projects take between one and four weeks of physical works, depending on the size and complexity of the space. Small offices can often be completed within a week, while large commercial spaces with extensive strip outs may take four to six weeks. Allow additional time for planning, approvals, and final inspections.

Do I need council approval for make good works in Melbourne?

Generally, no. Most make good works involve removing tenant improvements and restoring the space to its previous condition, which does not require a building permit or council approval. However, if the works involve structural changes, asbestos removal, or modifications to fire safety systems, specialist permits and licensed contractors may be required.

Get a Free Make Good Assessment

Do not leave your make good costs to guesswork. Spacez has been delivering make good and strip out projects across Melbourne for over 15 years, and we provide free initial assessments with fixed-price quotes so you know exactly what to expect.

Our team manages the entire process — from reviewing your lease obligations and scoping the works through to liaising with your landlord, completing the physical make good, and handling the final inspection.

If your lease is ending in the next 12 months, contact us today for a no-obligation assessment. We will review your lease, inspect the premises, and provide a detailed, itemised quote so you can budget with confidence.

Or call us directly on 0447 064 489 to discuss your make good requirements with one of our project managers.