When an office relocation is decided, many companies are troubled by restoration-to-original-state costs upon move-out. Unlike residential rentals, commercial rentals have a broad scope of tenant burden and are structurally prone to high-cost claims. Let's accurately understand the mechanism of restoration-to-original-state obligations to proceed smoothly with the move.
What Are Restoration-to-Original-State Obligations for Offices?
Restoration-to-original-state obligation is the obligation to return rented property to the state at the time of move-in. It was codified in the revised Article 621 of the Civil Code enacted in 2020, clarifying that deterioration from normal use (age-related deterioration and normal wear) is excluded from restoration obligations.
However, in commercial properties (offices), clauses requiring restoration to original state are included in contracts with nearly 100% frequency. The reality is that tenants often bear costs for items that would normally be considered age-related deterioration, such as wallpaper, flooring, and lighting fixtures.
How Is the Scope of Office Restoration Obligations Determined?
Damage the Tenant Should Bear
Scratches and stains caused by intentional acts or negligence are the tenant's burden. This includes wall scratches visible from afar, holes opened carelessly, and mold from poor cleaning.
Damage the Tenant Does Not Bear
Sun-faded wallpaper, rubber deterioration from humidity — these are age-related deterioration — and floor depressions from furniture, electrical burns behind appliances — these are normal wear — are in principle the landlord's burden. However, exceptions apply if there are special clauses.
Office-Specific Restoration Items
- Removal of partitions and partition walls
- Replacement of light bulbs and fluorescent lights
- Moving out furniture and equipment (everything installed must be removed)
- Removal of OA wiring
3 Important Points to Note in Restoration
Always Check the Lease Contract in Advance
If a contractor is specified, there is less room for price negotiation. Check in advance whether competitive bids from multiple contractors are possible, and when there is no specification, reduce costs through competitive bidding.
Consult with the Landlord in Advance
If the property shows little wear and wallpaper/floor replacement is unnecessary, the landlord may waive construction. Requesting a condition check from the landlord before move-out and eliminating unnecessary construction leads to cost reduction.
Allow Plenty of Time in the Schedule
Construction must be completed before the contract term expires, or daily rent will accrue. Start planning 6 months before move-out, and proceed with contractor selection, construction scheduling, and moving preparations in parallel.
Cost Estimates and Reduction Strategies
| Construction Item | Estimated Cost (per tsubo) |
|---|---|
| Wallpaper replacement | 3,000–8,000 yen |
| Floor tile carpet replacement | 5,000–15,000 yen |
| Partition removal | 10,000–30,000 yen/panel |
| Lighting fixture replacement | 5,000–20,000 yen/unit |
FAQ
Q. Does the scope of restoration differ between residential rentals and offices?
They differ greatly. In residences, age-related deterioration and normal wear are largely the landlord's burden, but in offices, tenants generally bear a wide range of costs through special clauses.
Q. Can I resist excessive restoration cost claims?
First scrutinize the contract contents, and costs not included in special clauses may be negotiable. Consider consulting a lawyer or real estate specialist.
Q. By when must office move-out restoration be completed?
In principle, it must be completed by the contract end date. If exceeded, daily rent accrues, so setting a schedule with ample time is important.
Q. What should I do if I cannot choose the construction contractor myself?
Even when only a designated contractor is allowed, confirming detailed estimates for multiple items and negotiating to eliminate unnecessary construction can sometimes reduce costs.
