Legal Definitions - trade fixture

A trade fixture refers to items of personal property that a tenant installs and attaches to a leased commercial space specifically for the purpose of conducting their business. Despite being physically connected to the property, these items are generally considered the tenant's personal property and can be removed by the tenant when their lease ends, provided the removal does not cause significant damage to the property.

The key characteristics of a trade fixture are:

• It is personal property, not a permanent part of the real estate.
• It is installed by the tenant, not the landlord.
• It is installed for the tenant's business or trade.
• The tenant has the right to remove it at the end of the lease term.

Here are some examples illustrating the concept of a trade fixture:

• Restaurant's Commercial Kitchen Equipment: Imagine a tenant leasing a space to open a new restaurant. They install a large, commercial-grade convection oven, a walk-in freezer, and a specialized deep fryer. These appliances are often bolted to the floor, connected to gas lines, and wired into the building's electrical system. Because these items are essential for the restaurant's specific business operations and were installed by the tenant, they are considered trade fixtures. The restaurant owner would typically have the right to remove them at the end of the lease, assuming the removal doesn't cause irreparable damage to the building structure.

• Boutique's Custom Display Shelving: A clothing boutique tenant custom-designs and installs unique, floor-to-ceiling display shelving units that are securely bolted into the walls of their rented retail space. These shelves are specifically designed to showcase their merchandise and reflect their brand's aesthetic. Since these units were installed by the tenant for their particular retail business, they qualify as trade fixtures, allowing the boutique owner to take them when they vacate the premises, provided they repair any holes or damage left behind.

• Dentist's Specialized Dental Chair: A dentist leasing an office space installs a specialized dental chair that is plumbed into the water supply and wired for electricity, making it integral to providing dental services. This chair is a highly specialized piece of equipment necessary for the dentist's professional practice. As it was installed by the dentist for their trade, it is a trade fixture. The dentist would be entitled to remove the chair upon the lease's termination, provided they properly cap the plumbing and electrical connections and repair any damage caused by its removal.