Trade Fixtures

trade fixturesTrade Fixtures – Industry Essentials

Trade fixtures can sometimes be referred to as chattel fixtures.  They should not be confused with personal chattels.  When you lease a commercial property, you’re giving your business a home.  Like all homes, you have standard essentials, but then each home is a reflection of those inhabiting it.  Special touches and props make a house a home.  If you personify your business, then think of the commercial property you lease, as a home for your business.

Every Business Needs a Home

What will you find in the home of your business?  Everything that essentially makes it acommercial leasing happy environment, where your business will thrive.  You will bring into the property all the essentials for your business.  Furniture, any decor and trade essentials are called ‘trade fixtures’.  Anything that you add to a leased property for business purposes is a trade fixture.  For instance, if your business is a bar or pub, you need a bar counter and possibly attached stools.  These are trade fixtures, without which you cannot run your business.  Without trade fixtures, the leased property would serve no purpose.  So your landlord should agree to any trade fixtures you intend to attach to the property.

Commercial Lease Agreement and Trade Fixtures

But your landlord needs to understand the role and relevance of a fixture.  Trade fixtures sometimes completely alter the property and may even cause damage to walls and flooring.  Your landlord may seek compensation for any alterations, unless you come to some agreement.  You might agree to either leave the  fixtures at the property when your lease ends, or refurbish the property in order to turn it back to its original condition.  The other option would be to offer your landlord compensation for any damages caused to the property.

If you need to discuss what trade fixtures you can add to your leased property, please give us a call.  We can help you negotiate with your landlord and create a lease agreement that covers any eventualities in relation to trade fixtures.  SG

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