Fitouts are a hot topic again, and Dexus is on the case, introducing its innovative “forever fitout” model at its premium 1 Bligh Street, Sydney.
First to take up the offer of a fitout that can be quickly used and reused through multiple tenancies is the Clean Energy Finance Corporation, saying this will minimise the embodied carbon and construction waste of traditional fitouts.
Developed in partnership with architects Woods Bagot, and unveiled in March at the Green Building Council’s Transform conference, the model offers a “premium, ready to occupy workplace with modular components” that can be reused through multiple tenancies – rather than being thrown out at the end of lease, which is sadly still a regular occurrence.
Even better is that each new fitout can be reconfigured in weeks rather than months.
Dexus’ executive general manager for office, Andy Collins, said the concept met tenants’ demand for speed, flexibility and reduced operational burden while still improving returns for investors over time.
Tenants typically wait three to six months between lease execution and occupancy for construction, as well as pay substantial make-good costs at lease end.
While landlords treat base buildings as long term assets, fitouts are short term and driven by tenants, creating a “mismatch” in sustainability outcomes.
But while the model, offered to all company tenants, it’s opt in choice, the traditional leasing model will still “remain a cornerstone of the office sector”, Collins said.
Collins said: “We’re removing friction from traditional leasing. For tenants, that means a premium, high-performing and sustainable workplace without the complexity of managing a fitout.”
For the landlord, it reduces vacancy downtime and accelerates rental income and has the potential to reduce the capital intensity of owning office buildings, he added.
“By investing in durable, reusable and reconfigurable components upfront, we avoid the waste associated with the repeated cycle of strip-out and reconstruction that consumes significant capital every time a tenancy changes hands.”
It helps with scope 3 emissions accounting
CEFC head of property, Michael Di Russo, said the model will help with businesses needing to account for fitout emissions as part of their mandatory scope 3 reporting, saying the model delivers a premium workplace with “significantly lighter environmental footprint.
“Traditional office fitouts embed around 200 kilograms of carbon per square metre – and that’s repeated every time a tenancy changes hands,” Di Russo said.
While furniture was designed to last 15 to 20 years, throwing out fitout meant people were missing out on 50-100 per cent of the value.
The fitout at 1 Bligh Street, Sydney, has also become the first to achieve the 5 Star Green Star Fitouts certification, the GBCA’s new rating tool.
Other trials underway include Dexus properties 25 Martin Place in Sydney, 80 Collins Street in Melbourne and 1 Eagle Street in Brisbane.
The current state of fitouts
At the GBCA event a session focused on future needs for the sector, with Caitlin Clarke, sustainability manager for development and growth markets at Dexus, CBRE’s head of ESG for the Pacific region, Su-Fern Tan, and FF&3’s managing director, Clayton Bristow, taking the stage.
Clarke said: “A truly circular future is one where fitouts stop being treated as disposable interiors and start behaving like adaptable systems designed for multiple buyers.”
An untapped frontier in sustainability
Clarke said that while landlords treat base buildings as long term assets, fitouts are short term and driven by tenants, creating a “mismatch” in sustainability outcomes.
She pointed to her own company as an example, saying that while it delivers buildings with 40 per cent embodied carbon emission reductions, once it’s in operation, fit out churn creates about half of those emissions.
“It’s an untapped frontier in sustainability. To move towards a more circular future together, landlords need to look beyond the base build to support our customers with our sustainability expertise.”
Avoid the chemicals – use mechanical fixings
Another practical tip for landlords was to avoid adhesives and move towards mechanical fixing to “enable circularity for the person who comes in and deals with it later.”
Su Fern Tan added that her “utopia” was when all materials “actually have value”.
Another practical tip for landlords was to avoid adhesives and move towards mechanical fixing to “enable circularity for the person who comes in and deals with it later.”
“At the moment, it’s just too easy to chuck things away. It’s too easy to demolish a building, and the value conversation needs to change.”
She adds it’s been difficult watching recycling, upcycling and reuse-based businesses fail, and perhaps a government injection to support the circular economy is needed.
A dream partnership
Her company, CBRE, is one of the companies that will use the forever fitout program. She said while its Sydney and Melbourne offices have been designed in isolation, “when Dexus approached us for our Brisbane fitout…we were so excited”.
“This is a dream partnership, when the landlord is actually helping us against materials [waste].”
Tan said a big help is to do asset inventories early.
“Find homes for your boardroom table, which, for example, took us ages to rehome and cost us.
“You don’t need to start that when your design process starts; you can start that months in advance.”
Tan said her company had engaged Clayton Bristow’s circular economy consultancy to help.
Bristow said that while furniture was designed to last 15 to 20 years, throwing out fitout meant people were missing out on 50-100 per cent of the value.
His utopia would be for assets to eventually be returned to the manufacturer to be reused.
“I don’t think we’re far off from it; we just need to get started with circularity. [And] there needs to be some initial investment – and I’m not talking about dollars. I’m talking about some elbow grease and some different kind of thinking.”
He said he is often asked, “How will investment in circularity benefit me in the future?”
His company has worked to monetise assets to help offset the costs of refurbishments and defect costs.
“It starts with understanding what your assets are and how you can get the best use out of them.”
He said rehoming fitouts also “bring people together”.
“Are we ready for circularity? The answer is yes. It’s here. [But] with a small cost associated with applying and managing that information [which] will move from CapEx (capital expenditure) to OpEx (operating expenditure).”
Read our other takeaways from Transform 2026, including more on indoor air quality and fitouts.