What are trade fixtures?

Trade fixtures refer specifically to the personal property of a tenant that has been installed for the purpose of conducting business and can be removed by the tenant upon lease termination. This means that the tenant installs these fixtures to perform their commercial activities, and they are not considered a permanent part of the property, as they can be taken with them when they leave.

In many commercial leases, trade fixtures are recognized and protected, allowing tenants the right to remove their installations, as they have often invested in them to tailor the space for their business needs. This differentiates trade fixtures from other types of fixtures which are typically considered part of the real estate and remain with the property when ownership changes or leases end.

Understanding trade fixtures is essential for both landlords and tenants because it affects what can be removed from the premises and ensures that both parties are clear on expectations regarding property alterations and personal belongings related to the business operations.