ABSTRACT

Commercial buildings are usually leased on a ‘shell and core’ basis with the landlord ensuring the demise or leased area enclosed by the external walls and/or roof and structurally sound. In some instances, the tenant will undertake the internal fit out of the space with finishes to their desired specification. Alternatively, the landlord may fit out the space to the desired specification of the tenant as part of the lease terms or as an incentive to achieve a favourable lease duration. Ultimately, the responsibility and ownership of the internal finishes is determined by the lease contract and this can be a particularly confrontational issue when the tenant leaves or the lease expires. This situation can lead to claims and counter-claims between the building owner and tenant for the putting back of the finishes to the demise in accordance with its condition at the commencement of the lease.