In commercial leases, what are trade fixtures considered?

Trade fixtures are considered personal property of the tenant. This classification is important in commercial leases because it allows tenants to install and remove equipment or improvements that are necessary for their business operations without losing ownership.

Typically, trade fixtures include items that a tenant installs, such as shelves, machinery, or specialized HVAC systems that are essential for conducting business. Even though these fixtures may be attached to the leased property, the intention behind their installation is generally tied to the tenant's business. Upon the termination of the lease, tenants usually have the right to remove these fixtures, provided they do not cause damage to the premises in doing so.

This distinction helps clarify responsibilities and rights between landlords and tenants, ensuring that tenants can maintain the necessary tools for their operations while also respecting the property owner's rights. The other options do not accurately capture the nature of trade fixtures in relation to commercial leases.