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Securing a lease and successfully opening a new business requires strategic planning, collaboration, thorough documentation, and careful execution. For many tenants, this is a new or relatively unfamiliar process, which can lead to inefficiencies and budget blowouts.


With extensive experience working alongside both seasoned and first-time tenants, FRP has gained valuable insights into the challenges and best practices. This guide provides a high-level overview of our approach, from lease execution to opening a brand-new tenancy, helping tenants get up and trading efficiently while ensuring landlords limit downtime on rent, vacancies and activation within the centre.

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1. Appointing a Designer

Once the tenant's lease has been executed, the Tenancy Coordinator will reach out to outline the process and request information regarding the tenancy's design, schedule, and construction. At this stage (if not already done), the tenant must engage a designer to design the tenancy.


If a tenant has not yet appointed a designer and requires assistance, the Tenancy Coordinator can provide a list of recommended professionals. If the tenant prefers to source their own designer, it is essential they meet the prerequisites set by the Landlord and that they receive the Fitout Guide before engagement. The Fitout Guide helps both the tenant and designer understand the design requirements, approval process and the level of documentation required for the Retail Design Manager and Tenancy Coordinator to approve the design.


Expert Tip


Choose a Designer with experience in shopping centre tenancies. This can save both time and money during the design approval process and on-site construction. Remember, the cheapest option is not always the best.

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2. Design Approval Process

Once a designer has been appointed, the tenant will receive a consolidated list of all required Landlord documentation for the initial documentation pack. The Retail Design Manager cannot approve the design without these documents, and ensuring all requirements are met from the outset can prevent unnecessary delays of weeks or even months.


If the designer has any questions regarding documentation or the Fitout Guide, they should contact the Retail Design Manager or Tenancy Coordinator as early as possible.

Expert Tip


To speed up the approval process, the tenant’s Designer and the Retail Design Manager should discuss any required changes directly, such as via a phone call. This approach minimises the need for multiple revisions, saving both time and cost.

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3. Appointing a Builder

During the design phase (or even earlier), it is advisable for tenants to start engaging with builders to construct their fitout. Similar to appointing a designer, the Fitout Guide and Tenancy Coordinator will outline the prerequisites for builders and can assist with recommendations.


Selecting an experienced builder who meets the Landlord’s requirements and deadlines (such as Lease Commencement) is critical. A capable builder will help keep the project on schedule and within budget, benefiting both the tenant and the Landlord. 


Expert Tips


  • Allow for a contingency budget for both the design and construction. This will accommodate any unforeseen changes to the design and anything the builder may have missed (latent conditions, etc.).
  • If possible and approved by the Landlord / Tenancy Coordinator, arrange for the builder to inspect the tenancy before commencing work. This will allow the builder to have a thorough site inspection and become familiar with the tenancy, shopping centre, and the full scope of works.
  • Ensure the builder completes all required inductions and shopping centre compliance well in advance of the construction commencement.
  • When obtaining quotes from multiple builders, carefully review each to ensure the full scope of work is included. A significantly lower quote may indicate missing elements, which could lead to costly delays later on.
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4. Preparing for Trade

As fitout completion nears, tenants must ensure they meet all final requirements set by the Tenancy Coordinator before they can begin trading. These may include:

  • A completed defect inspection with no major defects outstanding
  • All required compliance certifications
  • An Occupancy Permit
  • Any remaining lease-related obligations


Expert Tip


The timing of the defect inspection is crucial. It should be scheduled early enough to allow the builder sufficient time to rectify any major defects but late enough to ensure the majority of the work is complete. A well-timed inspection ensures that the tenant can open as planned and that the Landlord starts earning rent as soon as possible.

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Tenancy Coordinator

The Lessor/Landlord will appoint a Tenancy Coordinator responsible for the successful delivery of all tenancies by the Centre Opening Date.

Designer

The Lessee / Tenant must appoint an interior designer who is qualified and experienced in retail/F&B design. Must be experienced and qualified, a portfolio may be required to be submitted for approval.

Category 1 Works

Any changes or modifications to the building in which the tenancy are located, the tenancy or the services to the tenancy (including air conditioning; sprinkler system; emergency systems; power and switchboards; communication cabling and distribution boards; exit signage; floor topping; in slab and below slab works; and scanning; grease traps; water supply; gas supply; core holes for power; communication and plumbing; inter-tenancy wall construction; terrazzo works; expansion joints; and hoardings) required to suit the Tenant’s occupational and trading requirements and includes all required certifications relating to those changes and modifications.

Retail Design Manager

The consultant engaged by the Lessor / Landlord to review and approve the Tenant’s Design Drawings. The RDM assists the Tenant, their Architect / Designer and Builder in the design, layout and finishing of the Tenancy

Landlord

The owner / developer / operator of the Shopping Centre.

Lease Commencement

The date stipulated within the lease of when the lease term begins, and the tenant will begin paying rent.

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