How Tariffs and Trade Policies Are Impacting Commercial Tenants in Australia & NZ
Recent shifts in trade policy and the introduction of new tariffs are presenting unexpected challenges for commercial tenants across Australia and New Zealand. Rising costs of imported materials—from HVAC systems to tech and finishes—are blowing out fit-out budgets and stretching delivery timelines.
For occupiers, this means strategic adjustments are essential. Lease terms need greater flexibility. Contingency plans should be built into project timelines. And now more than ever, your property decisions must be aligned with global supply risks.
At Tenant Leasing Group (TLG), we’re helping tenants respond with smarter, risk-adjusted strategies—delivering value in volatile conditions.
The impact of current tariff turbulence on commercial tenants – in offices, shops and warehouses across Australia and New Zealand – is generally overlooked. Increased fit-out costs, longer lead times for essential inputs and equipment, uncertainty about the future: do we expand or consolidate? Should we renew or renegotiate? There’s rarely been a time in recent economic history where these questions have been more fraught.
What’s shifting: Tariffs and trade impact on tenants
New trade policies are increasing tariffs on key imported goods—particularly those used in commercial fit-outs like construction materials, electronics, and energy systems. While designed to bolster local industries or respond to global dynamics, these changes are creating cost pressures and delays for tenants. Office, retail, and industrial occupiers now face steeper pricing and uncertain timelines on everything from racking systems to HVAC units—making it harder to plan, refurbish, or occupy space with confidence.
Flow-On Effects for Commercial Leasing
Guidance for Tenants: Managing Uncertainty in a Volatile Market
As tariffs and supply chain pressures mount, tenants should take a proactive approach to lease strategy. Go beyond base rent—consider total occupancy costs, delivery lead times, and fit-out risks. Seek flexible terms like break clauses and capped landlord contributions. Bring in independent tenant advisors early to uncover hidden risks and protect your position. Explore alternative fit-out models using local or modular solutions, and always allow for potential delays. Smart planning now can prevent costly surprises later.
Tenant Leasing Group (TLG)
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