What is a trade fixture?

A trade fixture is a piece of equipment or property that is attached or affixed to a building or land for the purpose of conducting business. It is considered personal property rather than real property because it can be removed by the tenant or business owner at the end of their lease or when they vacate the premises. Trade fixtures can include items such as signage, display cases, shelving, ovens, and specialized machinery. They are often used in retail and restaurant businesses where specific equipment is necessary for conducting operations. It is important for tenants and landlords to establish agreements regarding trade fixtures in their lease contracts to avoid conflicts when vacating the premises.