What are trade fixtures?

Trade fixtures refer to objects that commercial tenants install in a leased space to conduct their business operations. These items are typically specialized equipment or furniture that serve a particular function within the business context, such as shelving units, display cases, or industrial equipment. Trade fixtures are not considered a permanent part of the property because they are intended to be removed by the tenant when they vacate the premises. In many legal contexts, even though these fixtures are attached to the property, they remain the personal property of the tenant because they are linked to the business's operations.

Understanding the nature of trade fixtures is crucial, especially in lease agreements, as they influence the rights and responsibilities of both landlords and tenants. Items that are permanently attached to a home are categorized differently, typically as real estate rather than trade fixtures. Generic items used in auctions do not have a defined relationship to business operations in a specific commercial context, nor do fixtures that can be easily removed capture the essence of what makes an item a trade fixture. The primary focus is on the intent behind the installation of the items and their use in conducting business activities.