If you’re starting a new retail or hospitality business, or relocating an existing one. a professional fit-out can make or break your space. Before you sign that lease, there’s a lot to consider. This guide will walk you through how to do a shop fit out step-by-step, and help you avoid costly mistakes down the track.
Why Planning Ahead Matters
Shop fit outs are more than just paint and power points. They involve compliance, layout, lighting, electrical, signage, and budgeting, not to mention planning for the unexpected. Without a clear roadmap, your dream space could quickly become a financial burden.
The Complete Shop Fit Out Checklist
1. Understand the Lease Conditions
Before touching a wall, you need to understand what the lease allows. Are there restrictions on signage, noise, or business hours? Are you responsible for returning the property to its original condition?
Tip: Always check if the landlord will contribute to fit-out costs. Some offer a fit-out incentive as part of the lease negotiation.
2. Budgeting: How Much Does a Shop Fit Out Cost?
One of the first questions business owners ask is, how much does a shop fit out cost? The answer depends on your location, size of the space, and scope of work.
- Basic fit out: $500–$1,000 per square metre
- Mid-tier fit out: $1,000–$2,000 per square metre
- High-end fit out: $2,000+ per square metre
Don’t forget to factor in:
- Council permits
- Design and compliance fees
- Electrical and lighting upgrades
- Signage and branding
- Technology and security systems
3. Engage a Commercial Electrician Early
Electricity is the backbone of your store, everything from lighting and air conditioning to signage and POS systems rely on it. A commercial electrician like Pratz Electrical can:
- Assess your current electrical capacity
- Design a safe and efficient layout
- Install energy-efficient lighting and emergency systems
- Ensure compliance with Australian Standards
4. Compliance and Certifications
Shop fit outs must meet a range of compliance standards—from fire safety and emergency lighting to switchboard upgrades. Make sure you’re working with professionals who can provide:
- Electrical Compliance Certificates
- Test and tag reports
- Emergency and exit lighting plans
If you don’t meet these standards, you could face delays, fines, or even be forced to shut down before you open.
5. Consider Fit-Out Depreciation & Write-Offs
Business owners often ask: Can a shop fit out be written off when a shop shuts?
Yes, under Australian tax law, you can claim depreciation on most of your fit out. If the shop closes, any undepreciated value may be written off as a loss. This is why it’s crucial to keep detailed records of all fit-out costs, broken down by asset type.
6. Is a Shop Fit-Out a Current or Non-Current Asset?
This depends on how long the asset provides value. Generally:
- Items like paint, signage, and minor fixtures = current assets
- Structural changes, lighting systems, air con, etc. = non-current assets
Your accountant will help determine this, but it’s smart to know how your fit out investments will appear on your balance sheet.
Final Thoughts: Don’t Rush the Lease
Before signing, review:
- Lease restrictions and obligations
- Fit-out timeframe and budget
- Access to essential trades (like your electrician)
- Long-term costs of maintenance, power usage, and future upgrades
Need Help With a Commercial Fit Out in Melbourne?
At Pratz Electrical, we specialise in helping business owners across Melbourne get their shop fit outs done safely, efficiently, and up to code. Whether you’re opening a new store or upgrading your existing one, we’ve got the tools, and the team to power your vision.
