What is Office Decommissioning?
Moving out of an office isn’t just about packing up desks and rolling out the door. Most landlords expect you to leave the space in a rentable condition, which usually means undoing whatever customizations you made: ripping out cabling, patching up walls, and making the place look like you were never there. That’s office decommissioning in a nutshell.
At its core, decommissioning is just a fancy way of saying “clean up your mess before you go.” But how much work that involves depends on your lease. Some tenants just need to haul out furniture and give the place a good cleaning, specifics of which are often outlined in what’s called a broom clean clause. Others? They’re looking at full-scale restoration. Think new carpet, fresh paint, and getting rid of whatever weird modifications the last guy left behind.
Why Office Decommissioning Matters
Skip out on decommissioning, and you’re setting yourself up for some not insignificant penalties:
- Losing your security deposit because the landlord had to hire someone to fix what you didn’t.
- Surprise charges for restoration work you could’ve handled cheaper yourself.
- Legal headaches if your lease had strict conditions about leaving the space move-in ready.
Decommissioning vs. Make Good vs. Lease Restoration
Landlords have different ways of wording lease exit responsibilities, but at the end of the day, they all boil down to the same idea: you need to return the space in a usable condition. The exact level of work depends on your lease and where you’re renting.
- Office Decommissioning (U.S.): Taking out everything that’s yours and making sure the space is ready for the next tenant.
- Make Good Provision (Australia/UK): A more rigid version where tenants have to restore the space exactly how they found it.
- Lease Restoration (U.S.): A broader term covering any fixes or repairs needed before handing over the keys.
Office Decommissioning Checklist
Unless your office looked super plain, office decommissioning can be a bit of a process, no doubt about it. Landlords have very specific expectations about what needs to be done before you hand over the keys. Here’s what a proper decommissioning job usually includes:
- Desks, chairs, cubicles—anything that wasn’t there when you moved in needs to go.
- Breakroom appliances like refrigerators, microwaves, and coffee makers.
- Filing cabinets, shelving, and whiteboards.
- Uninstalling server racks and network cabling (landlords don’t want a jungle of old wires).
- Removing custom lighting fixtures or security systems.
- Decommissioning Wi-Fi access points and any tenant-installed tech.
- Patching up holes from artwork, shelving, or mounted TVs.
- Repainting walls if required (some leases specify a return to neutral colors).
- Replacing carpet or flooring if it’s beyond normal wear and tear.
- A standard broom clean finish—swept, vacuumed, and free of debris.
- Deep cleaning if your lease requires it (especially for kitchens and bathrooms).
- Disposal of any last-minute junk that didn’t make it onto the moving truck.
- Doing your own pre-move-out inspection to catch anything you missed.
- Scheduling a walkthrough with the landlord to get final approval.
- Taking dated photos of the space as proof in case of disputes.
Handle all this the right way, and you’ll be walking out with your deposit intact. Mess it up? Expect a hefty bill from your landlord for “restoration costs” that could’ve been avoided.
Who Pays for Office Decommissioning?
Some tenants assume landlords will just take care of the cleanup after they leave. That’s a great way to lose your security deposit-or worse, get a bill that makes you wish you never signed the lease in the first place. The reality is that most tenants are at least partially on the hook for decommissioning costs, but how much depends on the upfront lease negotiation.
Lease Terms That Matter
Before making any assumptions, take a look at what’s actually in the lease. Restoration obligations are usually buried in sections about surrender conditions, tenant improvements, or alterations. Some leases are vague and just say the space must be left in “good condition,” while others spell it out in painful detail and require full restoration to its original state. If the lease says everything must go, that means everything, furniture, partitions, even that breakroom you thought was an upgrade. Ouch.
A common sticking point is modifications. If you installed walls, special lighting, or custom flooring, there’s a good chance the lease requires you to undo those changes. Some landlords are flexible and will let you leave upgrades in place, but unless you have that in writing, you’re better off assuming you’ll have to pay to restore the space.
Who Actually Pays?
If the lease says you’re responsible for decommissioning, then you’re paying for it. If you’re lucky, your lease might allow for a negotiated buyout, where you cut a check and let the landlord handle the work. This can actually be cheaper than hiring vendors yourself, depending on the situation.
On the other hand, there are cases where landlords take on the cost, especially if they like the new conference room you added, or the new flooring you installed. In cases like that they might waive the restoration requirement and let the next tenant keep them.
This is why negotiating lease terms before you sign is so important. If you agree to return the space to its original condition, you’re committing to that cost down the road. If you can work in language that allows for flexibility, like landlord approval to leave improvements in place, you could save thousands when it’s time to move out.
Office Decommissioning Costs
Office decommissioning costs can range from a few thousand dollars to well over six figures, depending on the lease terms, the size of the space, and how much work is required to restore it. Some tenants get away with little more than moving out and cleaning up, while others are stuck with demolition, cabling removal, and full-scale renovations (👀).
What Drives the Cost?
The biggest factor is how much needs to be removed or restored. A basic open-plan office with minimal modifications will cost far less to decommission than a space that was heavily customized. The type of lease also plays a role, as some landlords just expect cleaning, while others require full restoration to its original state, including replacing flooring, repainting walls, and rewiring electrical systems.
The table below gives a rough breakdown of typical office decommissioning costs based on the most common factors:
| Cost Factor | Estimated Range $$ | What it Covers |
|---|---|---|
| Furniture & Equipment Removal | $2 – $5 per sq. ft. | Hauling out desks, chairs, cubicles, and breakroom appliances. |
| IT & Cabling Removal | $1 – $3 per sq. ft. | Disconnecting and disposing of network cables, server racks, and wiring. |
| Wall & Floor Restoration | $3 – $10 per sq. ft. | Patching holes, repainting walls, deep-cleaning or replacing carpets. |
| Cleaning Services | $0.50 – $2 per sq. ft. | Standard broom-cleaning or deep-cleaning if required by lease. |
| Waste Disposal | $500 – $5,000+ | Fees for dumping large items or hazardous materials. |
| Full-Service Decommissioning | $5 – $20 per sq. ft. | End-to-end removal and restoration handled by a professional service. |
Keeping Costs Under Control
The best way to avoid excessive decommissioning costs is planning early. Tenants who wait until the last minute often have to pay a premium for rush jobs. Some landlords also allow tenants to pay a fixed decommissioning fee instead of handling the work themselves, which can be a more predictable and cost-effective option.
Plan Ahead = Saving Money
Office decommissioning is a lease obligation that can come with serious costs if mishandled. The smartest approach is understanding the lease terms early, negotiating restoration requirements when possible, and budgeting for decommissioning well before the move-out date.
For businesses planning an exit, getting quotes from decommissioning contractors ahead of time can help avoid last-minute expenses and rushed decisions.
The key takeaway? Know what’s expected before you leave, plan ahead, and don’t let decommissioning become an expensive afterthought.
