Existing Fit Out, Spec Fit Out & Turn Key Fit Out: What’s the Difference?

When searching for office space for lease, you will often hear the terms existing fit out, spec fit out, and turn key fit out. While they may sound similar, each option has very different implications for cost, timing, flexibility, and lease structure.

Understanding these differences is essential before committing to a space, as the type of fit out can significantly influence both the financial and operational outcome of a lease.

1. Existing Fit Out

An existing fit out refers to an office that already contains a layout and finishes from a previous tenant.

In most cases, the space has been occupied for a number of years and shows varying levels of wear and tear.

Key characteristics:

• Previously occupied office layout
• Fit out is aged or partially used
• Some refurbishment may be required
• Landlord may reinvest to improve presentation

Lease implications:

Because the fit out has already been paid for and depreciated, landlords often:

• Write down its residual value
• Offer stronger rental incentives
• Allow incentives to be used for refurbishment or rent reduction

Key benefit:

• Faster leasing process with immediate usability and stronger effective rent outcomes

2. Spec Fit Out

A spec fit out is a newly built office fit out delivered by the landlord without a specific tenant secured.

These spaces are designed to be ready for immediate inspection and occupation.

Key characteristics:

• Brand new, never occupied fit out
• Fully designed and constructed prior to leasing
• Typically smaller suites (often under 250m²)
• Designed to showcase quality and layout

Lease implications:

• Landlord has already invested capital into the fit out
• Incentives are adjusted to account for this investment
• Tenants may receive less cash incentive but benefit from ready made space

Additional considerations:

• Often excludes power and data installation to desks
• Tenants may need to fund final connectivity works
• Lease terms can be more flexible, sometimes starting from three years

Key benefit:

• Move in quickly without needing to design or build a fit out

3. Turn Key Fit Out

A turn key fit out is a fully customised office delivered by the landlord based on a tenant’s specific requirements.

Unlike a spec fit out, this model is designed collaboratively before construction begins.

Key characteristics:

• Custom designed to tenant brief
• Delivered by landlord approved contractors
• Funded through agreed incentive allowance
• Landlord manages full construction process

Lease implications:

• Requires detailed design approval prior to build
• Often tied to longer lease commitments (typically 5 years or more)
• Incentives are used to fund construction rather than rent reduction

Key benefit:

• Fully tailored office without upfront capital expenditure from the tenant

Key Differences at a Glance

Existing Fit Out

• Pre used space
• Fast occupation
• Incentive flexibility for refurbishment or rent reduction

Spec Fit Out

• New pre built space
• Fast and efficient move in
• Limited design input but high quality presentation

Turn Key Fit Out

• Fully customised space
• Designed specifically for tenant requirements
• Longer lease commitment typically required

How Fit Out Type Impacts Your Lease

The type of fit out you choose affects more than just aesthetics. It influences:

• Lease incentives
• Time to occupy
• Upfront costs
• Design flexibility
• Long term operational efficiency

Selecting the right option depends on your business priorities, timeline, and willingness to trade flexibility for speed or customisation.

Summary

While all three options provide office space solutions, they serve different leasing strategies:

• Existing fit outs prioritise speed and value
• Spec fit outs prioritise convenience and readiness
• Turn key fit outs prioritise customisation and control

Understanding these differences ensures you enter negotiations with clarity and avoid misaligned expectations.