The rent-free fitting-out period is usually meant for bare or partially bare industrial spaces such as warehouses or factories that require fitting-out or renovation works. Fitting-out works are usually required as the landlord or owner usually requires the outgoing tenants to reinstate to bare or original condition at the end of each lease or tenancy. You may also note that a refundable fitting-out deposit may be required by the building’s management or the landlord before the commencement of fitting out works.
While fitting-out bare units may require some time and effort, it may also be a good thing as the tenant has the flexibility and is able to design the space as per their own specific requirements and according to the tenant’s needs so that the tenant will not be wasting any space which is available within the premises. In this way, the tenant will also not be paying for unnecessary spaces which are not used or can’t be used.