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While new business models, fresh ways of working, and an increasingly tech-enabled ecosystem have shifted the workplace needs of companies(see trend coverage in CBRE Insights & Research and JLL Insights), one thing remains crucial throughout the disruption: the commercial office lease. Global CRE conditions have evolved across investment, office and logistics, with leasing momentum and capital flows improving into 2025 per JLL’s latest global outlook (JLL Global Real Estate Perspective). For current market intelligence and landlord/tenant dynamics, see CBRE Insights & Research.

A commercial lease is a binding agreement between landlord and tenant which sets out both parties’ obligations. The lease spells out terms and clauses for both landlord and tenant, so you, as the tenant, can better understand exactly what you’re entering into. Seeking out advice from trusted partners throughout your entire lease expiry process is smart, but when it comes to commercial office lease, advice from a tenant representative or legal advisor can help to ensure your lease agreement is favourable and fair.

What’s in a commercial lease agreement?

All commercial leases include what is known as ‘essential terms‘. As the name suggests, these terms are essential to the contract and without them, it may not exist at all. Essential terms are things like payment of rent, names of the parties involved and a description of the premises to be leased.

Outside of the essential terms, there are a number of clauses that can be included when it comes to your office lease. In this post, we will unpack six commercial lease clauses you can’t afford to NOT know about.

1. Subletting

The option to sublease part of your property to a third party can be helpful if your company’s space requirements are likely to change over the course of your lease. For example, if your business is downsizing, subletting some of your space can support cash flow by making use of unused floor space.

The option to sublease will need to be written into your lease agreement from the outset. Know that your original lease remains in effect even when a new sublease has been signed.

2. Repairs and maintenance

Maintenance and repair obligations should both be set out in your commercial lease. Generally, as a tenant, you are responsible for the ‘rented premises’ like floors, walls and fixtures, and are therefore required to repair and maintain them during your lease.

On the landlord side, maintenance and repairs to the structural parts of the premises, building systems and common areas like lobbies or the lifts are usually included. Check your lease carefully though as sometimes these items can be inserted under the tenant’s obligations.

3. Ending the lease early

Including a ‘break clause’ allows you to terminate the commercial lease earlier than the specified term. Most break lease clauses include a notice period where you must let your landlord know of your intention to break the lease.

If your lease agreement doesn’t include a break lease clause, and you end up needing to leave your lease earlier than the anticipated term, you may be required to buy out the term of your lease, assign it to a third party or otherwise negotiate an early exit with your landlord.

4. ‘Make good’ clause

A ‘make good’ clause is a standard inclusion in many commercial leases. The make good provision is negotiable but basically requires the tenant to return the premises back to their original condition, regardless of any improvements that have been made during the lease period.

Before you sign on the dotted line, ensure the make good clause is clear for both parties and you understand your obligations at the end of your lease. You’ll need to consider this additional cost when you decide whether to move at the end of your lease.  Given rising re‑fit costs and reduced new‑start pipelines in many markets, make‑good budgeting warrants stress‑testing; cross‑check current cost trends and fit‑out benchmarks in JLL Insights.

Furthermore, complete a thorough condition report including photos and videos of the office at the start of your lease. This will help you to avoid nasty surprises at the end of your lease agreement by providing clear evidence of the original condition of the premises.

5. Rent review

The ‘rent review clause’ explains the process for increasing the rent as the term of the lease proceeds and is common in many commercial leases. The common methods of rent review include:

• ‘Fixed percentage increase review’ that specifies a fixed rent increase on designated dates during the lease term.
• CPI rent review which is directly correlated to movements in the CPI (Consumer Price Index).
• Market rent review that reassess your rent in relation to the state of the financial market.

Ensure you are aware of the type of rent review clause your lease includes and that it suits your business requirements. When negotiating CPI, fixed, or market reviews, anchor your positions to current cycle dynamics and transaction evidence. Macro and sector context is summarized in JLL Global Real Estate Perspective and CBRE’s market reports within CBRE Insights & Research.

6. Option clause

An ‘option clause’ gives the tenant the option to renew their lease at the end of the initial lease term. Usually, the option needs to be exercised within a certain time period (eg. six months before lease expiry), and the tenant must not have breached any terms in the contract during the lease period. An option clause isn’t mandatory, so check your lease before signing. Option value is highly market‑dependent; vacancy, pre‑leasing, and construction pipelines influence leverage, see current market snapshots and pipelines in Colliers Research.

As you can see, a commercial lease is complex and, as a legally binding document, you want to ensure you’ve got all the bases covered. But the lease terms are just one part of the lease expiry process. To negotiate the right terms for your needs, you need to consider every aspect of the process and develop a robust workplace strategy. For more commercial lease advice and to learn more about choosing the right workplace design partner for your strategy, download our free ebook today.

Understanding Commercial Lease Terms That Matter

The Importance of a Solid Commercial Lease Agreement

A commercial lease agreement outlines the terms and conditions between a landlord and a business tenant. These commercial lease agreements aren’t just formalities they define how your workplace operates and what you're responsible for. Whether you’re entering a commercial business lease agreement for the first time or reviewing an existing one, it’s essential to understand each section fully.

Working with a consultant or legal advisor can help you evaluate commercial lease agreement terms, identify risks, and ensure the lease works in your favour. It’s one of the smartest investments you can make as a business tenant.

Make Good Clauses and End-of-Lease Conditions

One of the most commonly misunderstood terms in a commercial tenant lease agreement is the make good clause. This clause outlines how the tenant must return the property at the end of lease and it can include significant costs. A clear understanding of both commercial make good obligations and end-of-lease make good expectations is vital before signing any agreement.  For context on market cost pressures, review fit‑out and cost trends within JLL Insights.

A thorough condition report with photos and documentation at the beginning of your lease is a good way to protect your business from future disputes. If you're unclear about what's included in your commercial end of lease obligations, seek advice early in the process.

Reviewing and Negotiating Commercial Lease Terms

Lease terms should never be taken at face value. Whether you're signing a new lease or going through a lease review, take time to examine clauses around maintenance, break options, subletting, and rent increases. Many commercial property lease terms can be negotiated to suit your business goals.

Standard clauses like the break clause commercial lease, commercial lease maintenance clause, or option to renew often have strict notice periods or conditions attached. Know your deadlines and understand how each clause affects your ability to expand, exit, or adapt your space.

Crafting the Right Commercial Lease for Your Business

Every lease agreement business and commercial tenant signs should support long-term strategy. The best commercial lease clauses reflect your company’s priorities whether that’s flexibility, growth, or stability. Customisation of commercial lease terms and conditions ensures your workplace setup aligns with both legal requirements and operational needs.

Even the most standard commercial lease terms can include specific wording that shifts responsibilities, costs, and control. Clarifying your rights and obligations before committing helps avoid unnecessary surprises later on.

Conclusion: Your Lease Shapes Your Workplace Strategy

A commercial lease is more than just paperwork; it's the foundation of your business location. From subletting to rent reviews and making good obligations, understanding your commercial property lease advice is essential.

By taking the time to review your lease agreement commercial in detail, and getting expert guidance when needed, you put your business in the strongest position. For tailored advice on leasing, workplace planning, and office design, reach out to Axiom Workplaces.

Conclusion

A commercial lease is more than just paperwork; it's the foundation of your business location. From subletting to rent reviews and making good obligations, understanding your commercial property lease advice is essential.

By taking the time to review your lease agreement commercial in detail, and getting expert guidance when needed, you put your business in the strongest position. The better you understand your lease terms, the more control you have over your future space.

Further reading and current market references

• CBRE Insights & Research
• JLL Insights
• Cushman & Wakefield Insights
• Colliers Research

Why Choose Axiom Workplaces?

At Axiom Workplaces, we do more than design offices. We support your business at every step of your leasing journey. Whether you’re negotiating a new commercial lease, reviewing your current agreement, or preparing for the end of lease, we’ll help you make smart, informed decisions.

Our team combines leasing insight with workplace design expertise to create spaces that support how your people work now and how they’ll work in the future. We’ll guide you through the process, from lease clauses to layout, ensuring your new space works for your people, your budget, and your business goals.

With Axiom, you don’t just get a fitout, you get a partner who understands the big picture.

Frequently Asked Questions (FAQs)

 

 

What’s that saying about failing to plan? We know there are a few of them, and with good reason. Planning your office move is no different. Taking the time to make the most informed decisions can be the difference between a successful office relocation with minimal downtime and effect on productivity and an unsuccessful move that is stressful, inefficient and disruptive.

Preparing in advance will ensure your move is streamlined, both for your employees, teams and departments as well as for your clients and customers. A well-planned office move will mean a smooth transition where business-as-usual is affected as little as possible.

With this in mind, it makes sense to work alongside reliable and experienced professionals with plenty of the right skills and knowledge to ensure your office move goes off without a hitch. In this post, we’ll cover the key specialist roles usually employed in an office move and how they can help you make the best and most informed decisions when planning your office move.

Workplace strategist

Keeping your employees satisfied and attracting top-notch talent is a difficult job and designing an employee-centric workplace is one of the most important ways you can recruit and retain incredible employees. A workplace strategist will assist you to integrate the people, places and processes of your business, ensuring a productive, happy and efficient workplace.

Bringing together knowledge in facilities, interior design, real estate and IT, your workplace strategist can help you lower costs, drive workplace transformation and increase collaboration within and between teams and departments.

Undergoing major change, like office relocation, can be the perfect catalyst to hire a workplace strategist to create a holistic strategic framework from which your company can continue to grow.

Agents and tenant representatives

An agent is a landlord representative. It’s their job to lease out space in buildings. Most commonly, they have five or six buildings in their portfolio at any time, and they represent the landlords of those spaces. Whilst they are working on the landlords’ behalf representing their client’s interests, they also seek to maximise the potential of the space to garner the best result.

On the other side sits a tenant representative, who does exactly that – they are your representative as the tenant. They are focussed solely on your needs, without being tied to a landlord, and will negotiate with both landlords and agents on your behalf. Their fee is paid by you and is usually a commission percentage based on the savings they have achieved for you.

Commercial interior designer

As the name suggests, a commercial interior designer will create and direct the construction of a commercial space. From coming up with the initial concepts and floor plans, to developing a look and feel palette and 3D visuals, to directing and managing the actual rollout of the interior design, the commercial interior designer is there to guide the entire process. Not only will they design and implement interiors which match your brief, but they are also a source of expert professional knowledge around the construction process.

Legal and financial advisers

Understanding and entering a commercial lease is a complex and considerable undertaking. Therefore it is crucial you have considered the financial and legal implications.

It is likely your CFO’s role to look at and understand the office relocation costs as well as the ongoing lease costs and work out at what levels the business is comfortable with.

A commercial leasing lawyer will be best placed to review your lease agreement and can even negotiate on your behalf in terms of fixtures, fit-out and costs. A lawyer will also check for clauses that are not in your favour, eg. big payouts at the end of your lease or unreasonable make-good obligations.

Workplace design partners

Working with a workplace design partner like Axiom will help you to define a detailed workplace strategy to help increase productivity and support your overarching business goals. Using this as a foundation they can translate these ideas and objectives into a physical workspace that meets your needs.

A good workplace design partner starts by understanding your business needs now, and your needs into the future. They will look at your people, culture and what is currently happening in your organisation to design a workplace strategy and physical workspace that is unique to your business and based on hard evidence.

Partners like Axiom Workplaces look at the big picture and are with you throughout the journey – from design conceptualisation, planning, the fit-out itself, and, after completion, they will continue to make sure your workplace transformation is right for you and your people.

Throughout Axiom’s process, clients are supported by a highly-skilled, experienced and responsive team who nurture, develop and assume total responsibility for every detail, ensuring you are consulted at each stage of the project.

Ready to jump in? Book your free consultation with Axiom today.

 

An office lease expiry is one of those things that can easily get put on the backburner until suddenly it’s right in front of you. But without forethought and planning, it can end up being costly and very inconvenient!

Getting a start early is crucial whether you’re planning on staying in your current premises or relocating offices (if you are relocating, here is a helpful relocation checklist). Depending on the number of your employees, the size of your office space (current and into the future) and the complexity of your current commercial lease agreement, you should start planning at least 15-18 months before the lease expires.

Some things to remember:

• If you do not have a lease option in place, your landlord doesn’t have to renew your lease. This means whether you want to or not, you may have to relocate.
• If you are entering into a new lease, leave yourself plenty of time to establish the details. If you’re rushed, this gives the landlord more negotiating power.
• If you do have an option to renew, there is usually a notice period involved of 6-12 months.
• If your fixed-term lease expires, the landlord may allow you to remain in a ‘holdover’, on month-to-month terms. This is usually seen a risky proposition as you may need to be out within just one month if the landlord so decides.

So, what do you need to consider when deciding to stay and renew the current lease or move out and relocate to a new office? Let’s review the key factors:

Your current space

If you’re satisfied with your current office and location and have no intentions of outgrowing the space in the imminent future, it might be more beneficial to stay and renew your lease (if you have that option available to you).

Ask these questions:

• Is your current space fulfilling your needs?
• What about your needs in the near future?

Also, think about the costs of office relocation and factor this into your decision. Consider: planning, fit-out, ‘make good’ costs, moving expenses and any loss in productivity. Weigh these up against the benefits of moving to a new location eg. lower overheads or a better location.

If you do decide to stay put there is still a need to negotiate to ensure your company gets the best deal. Consider negotiating for things like base building improvements, new interiors, rights of first offer for adjacent space for growing into or contraction rights if you see downsizing in your future.

Company goals and objectives

An office lease expiry might just be the perfect time to consider how your workplace strategy fits in with your overall company goals and objectives and how your office space can support them.

Ask these questions:

• What are the growth forecasts for the business within 3, 5 and 10 years?
• What are the business goals over these same time periods?
• Do you need to cut costs or downsize?
• Is your objective to expand and attract new talent?
• Are there plans to change the way staff work (eg. more remote/teleworking)?

The type and amount of space you require post lease expiry depends heavily on the nature of the work being carried out so considering the company’s objectives is key.

Future plans

Examine your future business plans closely to help you decide whether to renew a lease or relocate your office. Think about how these plans might impact your current workplace and what they will mean for future space requirements. Reflect on whether staying put will allow your business to evolve in the right way, or if moving office will offer your business a better chance at future success.

If it looks like the future holds a dramatic change in the way your company works, or a large scale merger of departments from different offices into one, it’s best practice to engage with a change management consultant early on. Your consultant will help guide you through the process for a seamless transition with as little employee anxiety as possible.

Budget

As with most things, when it comes to an office lease expiry you need to consider the costs. Beyond thinking about lease or rent costs, it’s important to factor in all the many and varied relocation costs if you decide to move. Naturally, there are also costs associated with staying where you are, as your lease agreement may change for example.

How can a workplace design partner help?

If you’re feeling overwhelmed with all of these considerations, you’re not alone. This is where a workplace design partner can help. Companies like Axiom specialise in helping you design a workplace strategy, find your next property, manage the interior design, and transition your workforce.

Bringing in the experts ensures your business is taken care of, from start to finish. To learn more, download our free ebook How to choose a workplace design partner now.

According to a recent research report by Deloitte, the office is not getting any smaller or going away anytime soon, even with advances in mobile and digital technologies. In fact, from 1990 to 2017, the amount of total available office floor space in Australia even grew by 60%.

Technology is definitely transforming the workplace and how people work – but not the way most people think. Robots won’t be replacing everyone’s jobs. Deloitte mentions that people will still be ‘central to the future of work.’ What will change is the types of work humans do and the skills needed to succeed in the future.

At a lunch-and-learn event, we covered how technology drives workplace transformation. In this post, we go deeper into the discussion and focus on the impact of technology on the way people work:

Regarding the use of meeting rooms, how do you give people a choice when it comes to physical space and being able to duck into a room without the need to book?

1. Help employees to be more productive. People don’t come to the office because they want to. They come to the office to simply do their work and be productive. Employees ask themselves: ‘What’s in it for me?’ Things like meeting rooms and booking services need to help employees navigate obstacles and do their jobs effectively.
2. Provide an on-demand and personalised experience. It’s about giving your staff what they want, when they need it and in a form that is very personalised to them. They have to be able to identify with the experience and see its value. Take the example of the Uber experience. The service is not the vehicle or the driver. A normal taxi can provide that. The real difference that Uber offers is the ability to provide on-demand services, whenever and wherever they’re needed. Once you give people the confidence in choosing a meeting experience from anywhere at any time, you will see a change in behaviour. The work environment is no longer a big deal, and you will see a significant increase in workplace efficiency. We can create variety and choice across the whole environment that permits them to basically operate from anywhere but it’s underpinned by that confidence model.

When should you start considering technology when planning an office move or redevelopment?

You need to start thinking of how technology can be integrated as early as possible. According to Dan, you have to consider technology in the early stages of the process and “talk about technology today as a scalable investment.”

During an office move or refurbishment, people usually focus on where the space is going to be and what it’s going to look like. They defer technology decisions towards the end of the project – when budgets and timeframes are already constrained. This results in making some significant sacrifices on the technology front. They start cutting down on the things they wanted at the beginning. And they end up letting down the people who are going to use that work environment, ultimately impacting the level of potential productivity that could be leveraged.

So, don’t make the same mistake. Start to think about technology as a platform approach and identify and invest in what you need early.

Also, by thinking about technology early and properly communicating your needs to providers and partners, the better off you will be in meeting expectations and deadlines and achieving the outcomes you wanted at the beginning.

What is the behavioural impact of enabling technology in the way people operate, such as working from home or working non-traditional hours?

Technology has such a significant impact on the workplace, that it is changing the way people work. Here are some insights from our panel of experts:

People still seek human connection
With advances in mobile and digital technologies, people are now able to work anytime, anywhere. These days, people have the freedom and flexibility to work from home and outside the normal 9-5 hours.

But it seems employees still look for human connection. There is a slow shift back to people wanting to work in the office. They like meeting face-to face, looking people in the eye, shaking hands and directly engaging with colleagues and customers. Some even think that they are more productive and effective when working side-by-side with their team in the office.

Work-life harmony
Let's call it “work-life harmony” rather than balance as we all have to go to work and go home at the end of the day. Both work and home life are intertwined but it’s the communication piece in the middle that enables us to connect with our families and colleagues. Nothing can replace the element of human connection.

That’s why companies like Axiom develop workplaces that enhance human experiences and implement technology that enables harmony between work and home life – encouraging people to come back to the office. This then creates a cultural shift attracting employees of all levels, including leadership, to come in and get the work done.

Personalised service
Why would someone come to this office? As an employee, why would I want to do this? What’s in it for them? These are some of the questions that you need to consider when building workplace environments.

It’s not just about how impressive the technology is that you want to integrate. It also needs to serve a purpose. People need to see and experience the value of the service. Plus, it needs to be personalised to each individual’s need. For every inconvenience, we need to give employees two conveniences so they can start to offset one another, and they can start to see the value proposition beyond the friction.

Technology won’t be able to solve everything. There are going to be certain problems that you’re never going to be able to overcome or be able to rectify, but if you start to add lots of little things people can identify with – then they will begin to see the overall value of what you’re trying to do.

So, don’t just give your employees a desk to work on, personalise the service and make things easier for them. This would not only increase employee job satisfaction but also improve productivity and efficiency in the workplace.

This is how it all comes together; you’ve got to treat the working environment with respect and your employees with respect.

Want to learn how a design partner can help implement the right technologies to create a more productive and engaging workplace for your employees? Check out our free ebook How to choose a workplace design partner. Download it now!

“A direct impact on productivity, engagement and people’s happiness coming to work”
– Lauren, HR Manager, 1-Stop Connections

A global leader in port logistics solutions, 1-Stop Connections creates innovative products for the global market. From shipping and ports to road and rail, their suite of integrated products and tailor-made solutions aim to maximise operating efficiency throughout the supply chain.

Before Axiom…

Global logistics is fast-paced. 1-Stop are true innovators in the field and has rapidly outgrown their premises, taking on additional team members at an exponential rate. This is not set to slow down. Beginning with a staff of under 20, their team in 2018 comprised over 100 individuals with this figure set to double in the next five years. As such, they needed a space which would highlight their innovative spirit, spotlight their efficiency, facilitate collaboration and provide the scope to grow with the business.

Split across 4 floors, collaboration was waning, and the company looked to secure new premises where the connection between teams could be more readily fostered.

Axiom was invited to present their vision to 1-Stop decision-makers and was almost immediately engaged. Through a series of briefings, we brought together a team of designers, estimators, project managers and construction experts to create a visionary workspace.

With 1-Stop Connections, our team enjoyed the benefit of developing the workspace from a minimal blank canvas. We were presented with the new Redfern premises as a refurbished but older building complete with polished concrete floors, an open ceiling and industrial/warehouse vibe, all of which highlighted the initial acoustic challenges.

When collaboration is key, we need to manipulate space to provide areas which buzz and others where there is a possibility for quiet interaction. Installing the right materials to balance the environment’s sound was a challenge we addressed instantly. Part of the solution was to include a central breakout area, smaller one-on-one meeting rooms, shared spaces and 100 workstations which treated the acoustics uniquely in each area.

After Axiom…

“Already connection is felt across the business”
– Michael Bouari, CEO 1-Stop

From inception through to the ideation and implementation of the project, the Axiom team successfully transitioned 1-Stop from their previous premises into their exceptional new workspace.

Interior design, concept development, construction management, electrical and lighting solutions, furniture & workstations and project management were all within the brief and delivered within a 12-week timeframe to budget.

The creative vision was realised as a sleek, bold, modern and dynamic space. Careful, creative and considered, we approached the project as an opportunity to sculpt a unique space. Elevating the working environment, our design incorporated leading technologies and finishes as well as beautiful natural elements to increase workplace wellness.

Working with a progressive and innovative client, Axiom was able to push boundaries and arrive at meaningful, sometimes playful design decisions to achieve a space in which the team thrive.

“A deliberate process which delivered what we wanted”
– Tony Payn, GM Finance, 1-Stop

The concept rested on weaving the company’s story into every possible aspect of the fitout. Shipping containers were recycled and used as wall finishes. Aerial views of shipping ports were referenced in flooring patterns, and graphic elements throughout the workspace paid homage to the logo.

Bright blue cables were featured throughout the space – overhead, along walls and throughout breakout spaces to encourage the idea of constant movement. A playful take on tracks, shipping lines and journey maps – these features underpin the company’s ethos of progression and dynamism.

Largely open plan, the space caters for team discussion, high-level presentations and more private consultations. A creative core was constructed in the form of a communal kitchen/breakout space and an innovation lab was created which provides the opportunity for the team to share ideas and inspiration.

Ethical, energy-efficient and low carbon footprint options were also addressed as part of the design. Throughout this project, we had sourced many local materials, used existing fittings and applied a stringent vetting process to use suppliers who worked with a considered environmental approach.

We tackled the project with a mandate to re-purpose and re-invigorate as much of their current workspace as possible. By surveying their fixtures and fittings, we were able to bring into the new space a range of furniture that we upcycled and appropriated – thus reducing waste, maximising budget and removing the need to purchase more occasional furniture. Finally, our team ensured that the space provided exemplary abilities to recycle its own waste.

“Pretty much perfect”
– Michael Bouari, CEO 1-Stop

Pumping with enthusiasm, primed for spontaneous collaboration and right at the forefront of innovation – 1-Stop Connections now have a workspace which keeps pace with their energy.

Adaptable, dynamic and providing the flexibility to grow, Axiom has created a workspace which not only fulfils the current needs of the client but nurtures them towards the future as well.

Find out how Axiom can transform your current or new office space. Book a free consultation to see what we can do for you.