In short. In many Hong Kong office leases the tenant must return the premises to bare-shell condition at the end, at their own cost. Whether this applies to a fitted space depends on the lease, so ask in writing.
On this page
Reinstatement means returning the premises to their original condition when the lease ends. It is one of the costs that surprises tenants, because it arrives at the end, when nobody is watching the budget.
How it usually works
In Hong Kong office leases, the tenant usually pays for the work of returning the premises to their original bare-shell condition at the end of the lease. This is commonly described in commercial lease guides. Hugill & Ip describe it here.
That means that if you build a fit-out, you may have to take it out again when you leave.
Why it matters for a fitted office
On a fitted space, the position depends on the lease and on who owns the fit-out. Possible set-ups include:
- The fit-out belongs to the landlord and stays, so there is no reinstatement for those items.
- The tenant must reinstate anything it has added, such as extra partitions or cabling.
- The tenant must reinstate everything to bare shell.
We cannot say which applies to a given space. It is something to get in writing before you sign.
Questions to ask
- Who owns the fit-out, and does it stay at the end of the lease?
- What changes would count as tenant works, and would they need reinstating?
- Is there a reinstatement clause, and what exactly does it require?
- Does the landlord require a deposit or guarantee to cover reinstatement?
- Can the landlord agree in writing to waive reinstatement of certain items?
Budgeting for it
If reinstatement applies, ask a contractor for a quotation early and add it to your total cost of the lease. If it does not, that is a real saving for a fitted space compared with a bare shell.
Get advice
Reinstatement clauses can be complex. Ask your solicitor to check yours, and see lease terms explained.
This is general information, not legal advice.
