🛠️ What Is a Trade Fixture in Real Estate? Definition & Examples

A trade fixture is an item installed by a commercial tenant for business use that remains the tenant’s personal property. Unlike standard fixtures, trade fixtures can be removed by the tenant at the end of the lease as long as any damage is repaired.

How Trade Fixtures Work

Trade fixtures are items that a tenant installs to operate a business. Even though the item may be bolted down or connected to utilities, it does not become part of the real property. Instead, it stays classified as the tenant’s personal property.

Common examples of trade fixtures include:

  • Commercial ovens, refrigerators, and kitchen equipment
  • Display shelves and retail cabinetry
  • Salon stations and barber chairs
  • Office cubicles and workstations
  • Industrial machinery and manufacturing equipment

Trade fixtures must typically be removed before the lease ends unless the lease states otherwise.

Why Trade Fixtures Matter in Real Estate

For landlords and tenants, trade fixtures impact:

  • Who owns the installed equipment
  • What stays or goes at the end of the lease
  • Responsibility for removing fixtures and repairing damages
  • How improvements affect property value and taxes

Trade fixtures vs. standard fixtures:

  • Standard fixture: Becomes part of the property and stays with the building
  • Trade fixture: Installed by a tenant and may be removed at lease end

Example of a Trade Fixture in Action

A restaurant tenant installs a commercial pizza oven. Although the oven is bolted into the floor and connected to gas lines, it is considered a trade fixture. When the lease ends, the tenant has the right to remove the oven—provided they repair any damage caused during removal.

Why Trade Fixtures Matter for FSBO Sellers

  • Important for FSBO sellers with rental or commercial property
  • Clarifies what belongs to the tenant vs. the building
  • Prevents disputes during commercial property sales
  • Helps accurately describe inclusions and exclusions in listings

Understanding trade fixtures ensures clean negotiations and prevents conflicts over equipment ownership.

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