Trade fixtures in commercial leases refer to?

Trade fixtures in commercial leases refer to items that are installed by a tenant for the business operations of that tenant. These fixtures are typically necessary for the functioning of a business and are intended to remain with the business rather than become a permanent part of the property. Since they are specifically designed to aid in the conduct of the tenant's business, the tenant usually retains the right to remove them upon lease termination, provided that removal does not cause damage to the property.

In commercial leases, the distinction between trade fixtures and other types of fixtures is crucial because it impacts the rights of both the tenant and the property owner regarding property modifications and removals.

Understanding this concept is particularly important for anyone involved in commercial real estate, as it influences negotiations and lease agreements. Knowing that trade fixtures are tied closely to a tenant's business activities helps in recognizing their significance in the commercial leasing context.