Before signing a commercial lease in Perth, look beyond the rental rate. The condition of the building, available services, fitout requirements, approvals and make-good obligations can significantly affect the overall cost of your tenancy.
Many of these expenses only become apparent after a lease is signed, making early due diligence essential.
This 15-point commercial tenancy checklist helps business owners, tenants, tenant representatives and leasing agents identify potential risks before committing to a property. Asset owners can also use it to prepare their premises for prospective tenants.
The checklist covers everything from building condition and services capacity to compliance, landlord responsibilities and ongoing lease costs. It provides general guidance and does not replace independent legal, financial or technical advice.
Commercial tenancy checklist Perth: start with what the law covers
Perth's commercial property market presents opportunities for businesses looking to establish, expand or relocate. However, the suitability of a tenancy depends on more than its location, size and advertised rental rate.
The Property Council's July 2026 Office Market Report puts Perth CBD office vacancy at 15.4%, down from 16.9% in January, and indicates no planned new supply between 2026 and 2028.
For businesses considering existing premises, this highlights the importance of understanding the base building's condition, services and potential fitout costs before committing to a lease.
Commercial leasing requirements in Western Australia also depend on the type of premises and the nature of the lease.
Certain retail shop leases are regulated by the Commercial Tenancy (Retail Shops) Agreements Act 1985, which provides specific requirements and protections for eligible tenants. Whether the Act applies depends on the statutory definitions and relevant exclusions.
Office, industrial and warehouse leases generally fall outside the retail tenancy legislation unless they meet the relevant criteria. For these tenancies, contractual terms and other applicable laws play an important role in determining the rights and responsibilities of landlords and tenants.
Before signing, have a qualified commercial leasing lawyer review the lease agreement, including disclosure requirements, permitted use, outgoings, renewal options and make-good obligations.
Base build and commercial property condition
The base build refers to the building's structure and core services, which may include lifts, electrical infrastructure, central air-conditioning plant and fire protection systems.
Understanding the condition of these elements, and which party is responsible for maintaining or upgrading them, is essential before committing to a commercial tenancy.
Check 1
Confirm the Premises' Delivery Condition
Get the condition of the tenancy at handover documented in writing.
Confirm what the landlord will provide, including the floor slab, ceilings, lighting, air-conditioning distribution, electrical services and fire protection systems.
Clarify whether the tenancy will be delivered as a bare shell, partially fitted space or existing fitted premises.
Vague descriptions can result in unexpected costs if essential services or building elements are not included in the landlord's scope.
Check 2
Commission a Building Condition Report
Arrange an independent inspection of the premises before signing.
The Small Business Development Corporation recommends documenting the property's condition, including photographs, so both parties have a clear record at the start of the tenancy.
A condition report can identify existing defects, maintenance issues and potential fitout constraints. It also provides useful evidence when determining make-good responsibilities at the end of the lease.
Where appropriate, engage qualified building or engineering professionals to assess the condition of the premises.
Check 3
Request Asbestos Information
For older commercial buildings, ask whether an asbestos register and management plan are required and available.
Where applicable, review the asbestos register before planning refurbishment, demolition or other work that could disturb asbestos-containing materials.
Confirm who maintains the register, whether it is current and whether any identified materials could affect the proposed fitout.
Relevant asbestos management obligations should be checked against current WorkSafe WA requirements.
Services capacity
Building Services Capacity
A commercial property may appear suitable during an inspection but still require significant upgrades to support your business operations.
Electrical supply, air-conditioning, ventilation and fire protection can have a substantial impact on fitout costs and project timelines.
Confirming the capacity and condition of these systems before signing allows potential upgrades, responsibilities and associated costs to be discussed with the landlord early.
Check 4
Confirm Electrical Capacity
Ask for information about the building's existing electrical supply and the capacity available to your tenancy.
This should include the main incoming supply rating, spare switchboard capacity, submains cable size and available space within distribution boards.
Consider the electrical requirements of your proposed fitout, including workstations, server rooms, specialised equipment, lighting and future expansion.
An electrical contractor or engineer should assess your expected demand against the available supply and identify any upgrades required.
Electrical infrastructure upgrades can significantly affect project costs and lead times, particularly where additional capacity must be obtained from the electricity network.
Check 5
Assess Air-Conditioning and Ventilation
Request the available base-building mechanical services documentation before finalising your fitout budget.
Confirm the cooling and heating capacity allocated to the tenancy, available fresh-air connections, ventilation arrangements and any requirements for additional condenser space.
Ask who is responsible for maintaining the central air-conditioning plant and whether the system operates outside standard business hours.
For businesses requiring extended operating hours, after-hours air-conditioning charges can become an important ongoing expense.
Ventilation design should be assessed against applicable building requirements and relevant standards, including AS 1668.2 where applicable.
If your business has specialised equipment or higher occupancy requirements, additional mechanical services may be necessary.
Check 6
Review Fire Protection Systems
Understand the existing fire protection systems and whether they can accommodate your proposed fitout layout.
New partitions, meeting rooms and ceiling changes may affect sprinkler coverage, smoke detection, alarms and emergency exit arrangements.
Ask for current as-installed drawings and confirm whether modifications to fire protection services will be required.
Sprinkler alterations should be assessed against applicable requirements, including AS 2118.1 where relevant.
Before signing, establish who will be responsible for any necessary upgrades, approvals and associated costs.
Acoustics and access
The comfort, usability and compliance of a commercial tenancy depend on more than its physical size.
Acoustic performance, accessible circulation and building management requirements can all influence the design, cost and construction programme of a fitout.
Check 7
Assess Acoustics Early
Noise and privacy can significantly affect workplace comfort, productivity and the way employees use a space.
Consider the building's slab and ceiling construction, glazing, nearby mechanical equipment and neighbouring tenancies.
Open-plan workspaces, meeting rooms and private offices may have different acoustic requirements.
AS/NZS 2107 provides guidance on recommended internal sound levels and reverberation times for different types of spaces.
Where acoustic performance is important, engage an acoustic consultant to assess the existing premises before finalising the fitout design.
Identifying acoustic limitations early can help avoid costly modifications after construction has begun.
Check 8
Review Accessibility Requirements
Confirm whether the premises and proposed fitout meet applicable accessibility requirements under the National Construction Code, Disability (Access to Premises—Buildings) Standards and relevant Australian Standards.
Depending on the scope of work, accessibility upgrades may be required to entrances, circulation paths, doorways, sanitary facilities and other parts of the building.
These requirements can affect the amount of usable floor area and the final layout of the tenancy.
A registered building surveyor or access consultant can help identify the applicable requirements before the lease and fitout plans are finalised.
Check 9
Understand the Building's Fitout Rules
Request the building's fitout manual or construction guidelines before committing to the premises.
These documents may specify permitted working hours, noise restrictions, contractor requirements, lift access, loading arrangements, waste removal and procedures for obtaining building management approval.
Some buildings restrict noisy or disruptive construction activities to evenings or weekends, potentially increasing labour costs and extending the programme.
Understanding these requirements early helps establish a realistic construction budget and timeframe.
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Get In Touch With The TeamCompliance, permitted use and approvals
Before signing a commercial lease, confirm that the premises can legally and practically accommodate your intended business activities.
Building classifications, planning restrictions and approval requirements can influence whether a tenancy is suitable and how quickly your business can occupy the space.
Check 10
Confirm Building Classification and Permitted Use
Confirm that your intended business activities are permitted under the lease, relevant planning requirements and the building's classification.
Under the National Construction Code, offices are generally classified as Class 5 buildings. However, medical, retail, hospitality and industrial uses may involve different building classifications and compliance requirements.
Local planning schemes may also restrict certain activities depending on the property's zoning and approved use.
A change in how the premises are used may require further assessment or approvals, even where significant construction work is not proposed.
Before committing to the tenancy, confirm the proposed use with the relevant local authority and a registered building surveyor.
Check 11
Understand the Building Approval Process
Commercial fitout works in Western Australia may require a building permit, development approval or other approvals, depending on the proposed work and the existing use of the premises.
Certain circumstances, such as changes to building classification or use, may also require an occupancy permit.
Building permits are administered under the Building Act 2011, and relevant works must comply with applicable requirements of the National Construction Code.
A registered building surveyor can assist in identifying the relevant compliance requirements and building permit pathway.
Before signing, establish which approvals may be required, who is responsible for obtaining them and whether they could affect your intended opening date.
For more information, read our guide on whether you need building approval for a commercial fitout.
Landlord scope, market rent and make good
The commercial terms of a lease should clearly define what the landlord will provide, what the tenant must pay for and the condition in which the premises must be returned.
These matters can significantly affect both the initial fitout investment and the total cost of the tenancy.
Check 12
Confirm Landlord Works and Fitout Contributions
Clearly document the works the landlord will complete before handover, including any building services upgrades, repairs or base-build improvements.
Confirm whether the landlord is offering a fitout contribution, rental incentive or rent-free period to support the establishment of your business.
These incentives should be assessed against the actual cost of preparing the premises for occupation.
Make sure any agreed rent-free period reflects a realistic project programme, including design, documentation, approvals, procurement and construction.
As an indicative guide, some office fitouts may take approximately 10 to 20 weeks from initial planning to completion. Actual timeframes depend on the project scope, approval requirements, building condition and material lead times.
Discuss the proposed programme with your fitout team before finalising the lease commencement and rent obligations.
Check 13
Understand Your Make-Good Obligations
Make-good requirements can create significant costs at the end of a commercial tenancy.
Depending on the lease, you may be required to remove partitions, joinery, signage or other fitout elements, repair damage, repaint surfaces, replace flooring or restore the premises to an agreed condition.
The Small Business Development Corporation highlights the importance of understanding make-good obligations before entering into a lease.
Before signing, negotiate a clearly defined make-good scope and document the condition of the premises at handover.
Clarify which fixtures and improvements can remain, which belong to the tenant and how the final condition will be assessed.
Where relevant, negotiate appropriate provisions for fair wear and tear and obtain written confirmation of the agreed handover requirements.
Have your commercial leasing lawyer review these obligations so potential costs can be understood and negotiated before the lease is finalised.
Lease agreements, rent reviews and other costs
The cost of a commercial tenancy extends beyond the advertised rent and initial fitout.
Outgoings, rent reviews, security requirements, lease duration and future relocation obligations can all affect the financial viability of a property.
Understanding these commitments before signing helps you compare different premises on a more accurate basis.
Check 14
Understand Outgoings and Security Requirements
The advertised rental rate may not reflect the full cost of occupying a commercial property.
Depending on the lease and applicable legislation, additional outgoings may include council rates, land tax, water charges, security, common-area cleaning, maintenance and general repairs.
Request a detailed breakdown of proposed outgoings and supporting information where available.
Confirm which expenses are payable by the tenant, how they are calculated and whether any exclusions or limitations apply.
Security requirements should also be reviewed carefully. These may include a cash bond, security deposit or bank guarantee.
Understand the circumstances in which the landlord may retain a deposit or call upon a bank guarantee, including disputes relating to rent, damage or make-good obligations.
When comparing commercial properties, consider the total occupancy cost rather than the advertised rent alone.
Rent-free periods, landlord contributions and other incentives can also affect the overall financial value of a leasing offer.
Check 15
Match the Lease Term to Your Fitout Investment
A commercial fitout can represent a significant investment, so the lease duration should support your business plans and the expected period over which you intend to recover that investment.
Review the initial lease term, renewal options and any clauses allowing the landlord to terminate the agreement early.
Redevelopment clauses deserve particular attention, as they may affect your ability to remain in the premises for the full anticipated investment period.
Where relevant, seek legal advice about negotiating appropriate notice periods and compensation provisions.
Consider how future business growth, relocation or expansion may affect your occupancy requirements.
Speak to a Hub expert before you sign
The best time to identify building and fitout risks is before committing to a commercial tenancy.
Hub Interiors can assist with early planning and fitout feasibility, helping you understand how a proposed space may support your business requirements and what building upgrades could be needed.
With more than 450 commercial interior projects delivered from our Perth base, our team brings together architecture, interior design, construction and project management expertise to help clients make informed property and fitout decisions.
Whether you're relocating your office, considering a new commercial tenancy or preparing an existing property for occupation, early fitout advice can help you better understand potential costs, project requirements and timing.
Explore our office fit-out services and commercial building services, or speak to a Hub expert about the property you're considering.
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