What Is a Trade Fixture in a Commercial Lease?

By Kristi Waterworth – Updated Aug 12, 2025 at 10:47 AM | Fact-checked by Margo Winton Parodi

Key Points

Trade fixtures must be removed by tenants at the end of a lease.
Commercial leases should clearly define items as trade fixtures to avoid disputes.
Failure to remove trade fixtures converts them to the landlord’s property.

Trade fixtures are items commercial real estate tenants attach to or install in leased properties to be used for conducting business. An example of a trade fixture is a product display counter at a store.

Despite their name, trade fixtures don't actually remain in place. Unlike a fixture that stays behind in a residential property when it's sold or leased to a new property owner or tenant, trade fixtures must be removed by the tenant upon lease termination. This is because trade fixtures are considered the tangible personal property of the tenant, not the real property of the landlord.

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The bottom line

While we've clearly defined a trade fixture and given some examples, it's important to never make assumptions in commercial real estate. Whether you're the landlord or tenant, make sure you clearly indicate trade fixtures in the commercial lease so there are no misunderstandings to be dealt with in court when the lease ends.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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