Turning Challenges Into Opportunities in Commercial Leasing

How creative thinking transformed a hard-to-lease premises into a win for all.

In today’s property market, leaving a commercial space vacant isn’t just a missed opportunity – it can quickly become a financial burden. Older office buildings in particular face steep challenges. Compliance hurdles around disabled access, fire safety and egress standards often make them difficult to lease without major investment.

According to the 2025 Office Fit Out Cost Guide for Australia, moderate-quality fit-outs in Sydney now average $3,220 per square metre, making upgrades prohibitive for many owners.

This was the case with a 600 sqm premises in an older Chatswood building managed by Shead Property. The space had sat vacant for three years, not because of its location, but because the building’s age meant any landlord-led subdivision would have triggered costly council compliance upgrades. For the owner, the prospect of spending hundreds of thousands of dollars on works like new lifts and access ramps was simply not viable.

A creative approach

When a prospective tenant emerged looking for around 300 sqm for their business, the mismatch seemed obvious. The Chatswood space was double what they needed, and the tenant had a limited rental and fit-out budget. However, Shead’s team recognised an opportunity to take a different approach.

Instead of the landlord lodging a development application (DA) to split the floor, Shead advised the tenant to incorporate the subdivision into their own fit-out DA. Under council’s hardship provisions, such applications are assessed differently: the focus is on enabling tenants to establish their businesses without being burdened by full building compliance upgrades. This meant the tenant could proceed with their 300 sqm fit-out – including offices, meeting rooms, a boardroom and kitchen – while council left the rest of the building untouched.

A trusted network to make things happen

The tenant still faced another hurdle: delivering a fit-out on a tight budget without knowing the required process or access to designers and builders. By drawing on our trusted network of architects, town planners, builders and other trade professionals, we not only connected the tenant with the right expertise but also oversaw the process end-to-end – from DA preparation and lodgement to the final fit-out – ensuring the space was delivered on time and within budget.

As Head of Commercial Leasing and Sales, Bill Geroulis, explains: “We were staring down the barrel of a floor we couldn’t lease. By thinking differently, we turned it into a win for the landlord, who avoided costly upgrades; a win for the tenant, who secured affordable space in Chatswood; and a win for us as managing agents, because once tenants are paying rent, everyone benefits.”

A win for all parties

Within months, the tenant had moved in and the landlord was receiving rental income for the first time in three years. Six months later, we also secured a tenant for the remaining half of the premises. What began as a long-term vacancy in a Grade C building became a cash-flow positive outcome, achieved through strategic thinking and collaboration.

This case study highlights how our extensive experience and local knowledge can uncover solutions others may overlook. By aligning landlord needs, tenant requirements and council legislative processes, we not only filled a challenging vacancy but also demonstrated the value of having an expert team in your corner.