If you are a physical storefront owner with premises in a shopping centre, mall, or similar entity, you’ll be well aware that part of your lease stipulates periodic mandatory shop refits. Depending on who the lessor is, this may be every three, five, seven, or ten years, or more or less frequently.
Retailers spend millions of dollars annually on refitting, remodelling, refurbishing, and refreshing their premises – and if you renew your lease, chances are you will be required to do so as well.
Don’t panic! CMLS Commercial Interiors is here to help – and as a top Sydney shopfitter and interior designer, we have everything you need to achieve a stunning refurbished space at a budget you can afford.
The Law Regarding Mandatory Shop Refits
Per the NSW RETAIL LEASES ACT 1994 (at Nov 2023):
- For initial shop fit-outs and future refits, tenants are usually responsible for the costs of installing fixtures and fittings, as well as at least some (if not all) of the costs the landlord must bear to prepare the space for fit-out. It also usually requires the temporary closure of the business while works are completed; rents are usually still payable during this period.
- Within shopping centres, malls, and arcades, fit-outs must also meet a specified construction standard. This should be defined in the tenancy agreement.
- Moreover, many leases include a clause that requires, when it is time to potentially renew the lease, refurbishment works are required and at the expense of the tenant. Tenants also usually bear the de-fit/make-good costs at the end of the lease.
- According to the RETAIL LEASES ACT 1994 – Section 38 – Refurbishment and Refitting, the provision in a retail shop lease that the lessee must refurbish or refit the shop becomes void if the original lease does not clearly stipulate detailed requirements to indicate the timing, extent, and nature of the mandatory refit or refurbishment.
Things to Consider
Commercial landlords must provide tenants with at least two months’ notice of alteration works that will impact the tenant unless it is necessitated by an emergency.
Retail refurbishments are not a simple process. They are frequently referred to as Small Scale Commercial Developments, and they may require Council DA Approval before the project commences. This depends on the type of business or premises and the type and scope of the work to be carried out. This particularly applies to retail and other commercial refurbishments that incorporate a shop front or external aspects such as decks, doors, windows, and awnings.
CMLS Commercial Interiors can help with this – from architectural design to building and installation, we manage the entire project from concept to completion.
The Benefits of A Shop Refit
While mandatory refitting may sound overwhelming, it does offer distinct benefits to retailers. There is no more effective way to re-engage fickle or bored consumers than with a fresh, new, and even possibly rebranded space. This applies whether you are a hair salon, a clothing store, a pharmacy, a supermarket, a financial institution, a bookseller, or any other type of commercial enterprise.
The vast majority of total retail sales still occur in physical store environments, despite the growing appeal and saturation of online shopping experiences. Transforming your space can:
- Reflect and improve your brand’s core values and stature
- Enrich the customer experience
- Attract new customers
- Amplify sales
- Boost employee morale
- Increase your profits
Your Top Sydney Shopfitter!
CMLS Commercial Interiors is a leading Sydney shopfitter working with clients from the City to Parramatta, Penrith, and beyond.
We perform de-fits, fit-outs, and refits across many sectors including:
- Retail
- Hospitality
- Corporate
- Commercial kitchens
- Medical and healthcare
- Salons
- Supermarkets
- Showrooms
- Department Stores
- Government Agencies
- and more.
We also offer creative, expert design services.
Our exceptional experience in our industry working with hundreds of clients over several decades makes us your ideal provider when it’s time to refit your store. From small, simple changes that pack a big punch to complete de-fits and refits, you can’t go wrong with us! We handle the entire process, including even the acquisition of Council permits and other legal and administrative requirements.
Learn more about our shopfitting services near you and get in touch with us to explore how we can deliver for you and your customers’ delight!