What is a trade fixture?

A trade fixture refers to personal property that a tenant installs or attaches to a rented commercial property for the purpose of conducting business. This can include equipment, machinery, or furnishings that are necessary for the tenant's operations. Importantly, even though these fixtures are attached to the property, they are considered the personal property of the tenant, which means that the tenant has the right to remove them at the end of the lease, as long as the property is restored to its original condition.

The concept of trade fixtures is particularly significant in commercial leasing situations, where tenants often need to customize spaces to suit their specific business needs. The relationship between trade fixtures and the tenant's business is what primarily defines them.

In contrast, options involving appliances installed by a landlord or permanent structures on commercial property do not capture the essence of trade fixtures, as they typically pertain to the landlord's property rather than the tenant's personal business-related items. Similarly, staging furniture used for sales is not relevant to the definition of trade fixtures, which are strictly tied to the business operations of a tenant rather than decorative or aesthetic purposes in home sales.