Between 2026 and 2028, a significant volume of commercial office leases in Sydney, Melbourne and other capital cities are set to expire. For many businesses, this represents both risk and opportunity, but without a clear workplace strategy, costly mistakes are common.
When businesses move into a new office, rent is often the biggest cost after people. However, expensive mistakes still happen, and they occur before the lease is even signed. Hidden costs, poor planning, not understanding what a great deal is, or choosing the wrong space can all lead to delays, wasted spend and even paying rent on two properties at once. Over time, these issues can cost businesses millions of dollars.
So, where do businesses typically go wrong? Spaceful CEO Ben Myhill reveals the most common real estate mistakes made by businesses, and how to avoid them.
Going to market without knowing true need
Starting the search without a clear brief often leads to leasing the wrong space. Too big and you pay for unused square metres; too small and you risk costly reconfigurations or an early exit. With most leases lasting 5–10 years, it’s important to factor in potential headcount changes, and build flexibility into your workplace strategy, lease terms and office design.
In one recent case, recalibrating actual space requirements reduced our client’s footprint significantly, delivering $21 million in savings across a 10-year lease term. This highlights the value of a proactive, data-backed workplace strategy.
Solution: Define your workplace strategy and space requirements before going to market. Engage workplace and property experts together to maximise flexibility and future proof your investment.
Not assessing market supply or timing
Many businesses fail to consider upcoming stock or how lease expiry aligns with market cycles. If your lease ends during a period of low supply, you’ll face fewer quality options, reduced incentives, and weaker negotiating power.
Solution: Understand the supply pipeline early and plan your go-to-market strategy well in advance, especially in a tightening market.
Failing to define landlord obligations
Landlords sometimes offer an additional contribution (on top of the standard incentive), to take on a site ‘as-is’. For example, you might be offered $600/sqm to demolish a 15-year-old fit-out and upgrade the base build ceilings, lighting and flooring. While this can reduce waste, it also comes with financial risks if not negotiated properly. If the scope of works, cost responsibilities, and base build specifications aren’t clearly defined and independently costed, the tenant may end up covering more than expected. What seems like a good offer can end up favouring the landlord more than the tenant.
Solution: Clearly define and document all landlord works and engage an independent party to price them before signing your Heads of Agreement and Lease.
Relying on speculative fit outs
Pre-built spaces provided by landlords, known as speculative (spec) fit-outs, may seem like an easy and cost-effective option. In reality, the construction cost is deducted from your incentive pool. Tenants often underestimate how expensive it is to modify or remove elements from a spec fit-out, wasting funds that have already been spent. On top of that, these fit-outs often compromise on essential infrastructure, such as:
- Supplementary air conditioning not installed
- Reduced electrical and comms cabling
- Non-acoustic walls and infrastructure
- Missing or misaligned tech and security systems
Solution: A custom-built fit-out maximises ROI, reduces waste and creates a workspace tailored to your operational needs and brand identity.
Skipping due diligence
Many businesses commit to a building without fully assessing its infrastructure. Issues with condenser water, fresh air and power supply capacity, fire egress or fire systems often only surface after design or fit-out work has started, leading to cost blow outs and redesign.
Solution: Conduct a full technical due diligence review before signing the lease to avoid surprise costs.
These mistakes are common but avoidable. Whether planning an office move or reassessing an existing lease, the right workplace strategy can save significant time, money, and stress, setting your business up for long-term success.
Make smarter property decisions. Find out how Spaceful can help you reduce costs, improve property outcomes, and make confident, future-ready decisions.
