What are trade fixtures?

Trade fixtures are items that a tenant installs in a rental space for the purpose of conducting their business. Although these fixtures are attached to the property, they are considered the personal property of the tenant. This distinction is crucial because, upon lease termination, the tenant has the right to remove the trade fixtures, provided this removal does not cause significant damage to the property.

In this context, the other options do not accurately reflect the nature of trade fixtures. Permanent structures added by property owners typically remain with the property after a lease ends, while trade fixtures are specifically associated with the tenant's business. Permanent fixtures on a commercial property refer to items that are integral to the building itself, which are usually not removed by tenants. Items fixed to the property for long-term use can imply they are intended to stay permanently, which does not align with the definition of trade fixtures that the tenant can remove. Hence, focusing on the tenant's personal property as new additions ensures a clear understanding of what trade fixtures are and their significance in commercial leases.