Answers · Make-good
What is a make-good clause in a commercial lease?
Direct answer
A make-good clause sets out the condition in which a tenant must return the premises at the end of a lease. It can range from a basic clean to full reinstatement — removing fit-out, partitions and signage and restoring the building to its original state — and can be a significant end-of-lease cost.
Make-good obligations are easy to overlook when signing a lease and expensive to discover at the end of one. The wording matters: 'fair wear and tear excepted' softens it; a strict reinstatement clause can require you to undo every alteration, including improvements the landlord might actually want kept.
It's often negotiable — at the start of the lease, at renewal, or as a cash settlement in lieu of physical works at the end. A reasonable landlord will take a practical view, especially where your fit-out adds value to the building. Clarifying make-good up front, in writing, prevents a nasty surprise and a dispute when you're trying to move on.
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