17 costly fitout mistakes to avoid before you sign a commercial lease
A practical checklist for retailers, food operators, medical providers, office tenants and commercial tenants
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Finding the right commercial tenancy can feel exciting. But the real cost of a commercial lease is rarely only the rent. Commercial and shopping centre leases can place significant responsibility back onto the tenant — design approvals, consultant coordination, authority approvals and certification among them.
This checklist has been created to help you pause before signing and ask better questions. It does not replace legal, financial, building certification or project-specific design advice — but it will help you identify where tenants can be caught out before the business has even opened.
The hidden cost pathway
The mistake is rarely one single item. It's usually the chain reaction that follows.
Specific designers, consultants, certificates, finishes, signage, hoarding, access procedures or approved contractors may be required.
Extra costs may arise for structural engineering, certifiers, electrical upgrades, fire services, hydraulic services, mechanical works, design amendments or make good.
You may not be allowed to start works, remove hoarding or open for trade until approvals and certificates are complete.
Rent, outgoings, staff, stock, builder payments and finance costs may continue even if the tenancy is not trading.
If you've provided a personal guarantee, director guarantee, bank guarantee or personal asset security, the risk may extend beyond the business.
The 17 mistakes
Signing before checking business use
Not every tenancy suits every business. Ask: has anyone confirmed this tenancy can lawfully support my proposed use?
Choosing a designer based only on price
A cheaper designer may become expensive if drawings are rejected or incomplete. Ask: can they produce documentation the landlord and certifier will accept?
Missing base building modification costs
Most tenancies need changes to air conditioning, fire, hydraulic or electrical services, done by landlord-approved contractors. Ask who pays.
Assuming landlord approval means compliance
Landlord approval may relate only to the look. Ask: does this cover compliance, or do I need separate building and certification approvals?
Not checking designer authorisation
In Queensland, commercial fitout design may require legal authorisation. Ask: is my designer legally authorised and insured?
Assuming existing services will suit your fitout
Power, plumbing, drainage, air conditioning, exhausts and fire services may not suit your business. Confirm what's available and what upgrades may be required.
Fire hydrants & shopfront conditions
A lease line may sit near fire hydrants or hose reels, which may need to be incorporated at the tenant's cost.
Forgetting certification stops trading
A space may look finished and still not be approved to trade. Confirm what certificates are required, and who obtains them.
Underestimating structural requirements
Structural certification may be required for shopfronts, glazing, signage, partitions, ceilings and overhead elements.
Not allowing time for electrical safety checks
Electrical work may need checks before works start and again before trade — build this into your programme.
Getting a builder's quote before the scope is documented
A quote based on incomplete drawings or unknown approvals may lead to variations — the builder may be pricing assumptions, not the true scope.
Being distracted by a rent-free period
Incentives can come with conditions, timing limits, exclusions and clawback provisions — you may still owe outgoings, levies and fees during it.
Confusing turnover rent with profit sharing
Turnover is money coming in before expenses — not the same as profit. Some leases charge additional rent on turnover above a threshold.
Forgetting about make good
Make good can require removing fitout works, reinstating finishes, signage and services at the end of the lease. Know the scope upfront.
Not understanding security & personal exposure
A landlord may require bank guarantees, deposits or personal guarantees. Get legal and financial advice before you commit personal assets.
Assuming you can walk away if it doesn't work
A lease is a legal commitment. If the business fails, you may still owe rent, outgoings, make good and other lease obligations.
Signing before getting the right advice
The most expensive mistakes happen before the designer or builder is properly engaged — when the lease is signed without understanding the full pathway ahead.
Pause before signing if any of these apply
- You don't know whether your business use is permitted in this tenancy.
- You haven't checked whether your designer is legally authorised and insured in Queensland.
- You don't know whether structural certification or fire services are affected.
- There's a hydrant, hose reel or fire cupboard near the shopfront or lease line.
- You've been offered a rent-free period but don't know if outgoings are still payable.
- You don't know whether the lease includes turnover rent, or how it's calculated.
- You haven't had your accountant model the cash flow impact of percentage rent.
- You haven't checked your make good obligations at the end of the lease.
- You haven't received legal advice on the lease, or on bank/personal guarantees.
- You feel pressured to sign before you have enough information.
Red flags are not there to stop you. They are there to slow you down before the mistake becomes expensive.
Not sure whether the tenancy is right for your business?
Before signing a lease or committing to a builder, it's worth understanding whether the space can support your business operationally, commercially and practically. Book a pre-lease fitout discussion with Leithal Designs — 25+ years across commercial sectors on the Gold Coast and Brisbane.
This checklist is general in nature, prepared for educational purposes only. It does not replace project-specific advice from a qualified designer, builder, certifier, town planner, engineer, solicitor, accountant or financial advisor. Leithal Designs provides commercial interior design and building design services and does not provide legal, financial or lease negotiation advice.