4 Considerations For The End Of Your Office Lease

Your Brisbane CBD office lease is nearing expiry, so what comes next? Whether you are planning to renew, relocate, or reassess your current space, there are several key factors to consider before making your next move.

Below are four important considerations to help guide your decision-making process as you approach your office lease expiry.

1. When to start looking for a new office

In Brisbane’s current office leasing market, vacancy across the CBD sits above 15%. This equates to more than 350,000sqm of commercial office space available within approximately 1km of Queen Street.

For tenants exploring office space for lease in Brisbane CBD, reviewing all suitable options can be time-consuming. In some cases, inspecting the full range of available tenancies can take days when considering the variety of fitted, unfitted, and spec fit out office spaces.

To ensure you have sufficient time to evaluate your options, negotiate terms, and secure a new lease, it is generally recommended to allow at least six (6) months, with a preference for twelve (12) months where possible.

Given you will still be running your business throughout this process, allowing adequate lead time ensures better decision-making, improved leasing outcomes, and a more suitable long-term office solution for your team.

2. Extending your current lease – option periods

If your current Brisbane CBD office space remains suitable, renewing your lease may be a viable alternative to relocating. However, this is not as simple as allowing the lease to roll over or accepting a “market rent” renewal without negotiation.

Securing favourable renewal terms typically requires a structured approach that introduces competition and demonstrates to your landlord that alternative office options exist within the Brisbane CBD leasing market.

This process is usually initiated 12 months prior to lease expiry, although timing may vary depending on landlord strategy and vacancy risk.

If your lease includes an option to renew, you will generally need to provide notice between three (3) and twelve (12) months prior to expiry. These option clauses often include a market rent review, meaning your rent will be assessed against comparable Brisbane CBD office leasing evidence at the time.

Understanding your lease structure early is critical, particularly when assessing your make good obligations, renewal rights, and overall leasing strategy.

3. Relocating within your current building

As your lease expiry approaches, it is worth considering whether your current building still meets your operational needs. It is uncommon for businesses to remain unchanged throughout an entire lease term, meaning your space requirements may have evolved.

In many cases, alternative office spaces within the same building may better suit your current team size, workflow, or workplace strategy. This could include a smaller, more efficient tenancy or a redesigned layout that improves functionality.

Key considerations include timing (typically 3–6 months), fit out requirements, and responsibility for any capital works or refurbishment costs. In some cases, landlords may contribute to these works through leasing incentives, depending on negotiations and market conditions.

4. Make Good

All commercial office leases in Brisbane CBD include a Make Good clause, which outlines the tenant’s obligations at the end of the lease term in relation to returning the premises.

The requirement will vary depending on the initial condition of the space and the agreed lease terms. Common make good obligations include:

• Full removal of all tenant-installed fixtures and a return to base building condition (including carpet and ceiling grid)
• A cash settlement contribution paid to the landlord to complete make good works
• Leaving the premises in a clean and tidy condition, subject to fair wear and tear

Make good costs can be significant and should be factored into any end-of-lease planning, with allowances often in the range of approximately $200 per sqm depending on the size and complexity of the fit out.

While Make Good provisions should not be the sole driver of your leasing decision, they are an important financial consideration when evaluating your overall office relocation or renewal strategy.