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Trade fixtures in commercial lease agreements

| Dec 29, 2020 | Commercial Real Estate |

The terms included in the lease agreement between a California landlord and a commercial tenant are important. Even the smallest details could impact how well the landlord-tenant relationship works, and including important details could prevent disputes and issues. One of the specific details one may need to include in commercial lease agreements are terms pertaining to trade fixtures.

Trade fixtures are certain things a commercial tenant may install that are necessary to conduct business. For example, a tenant may need a counter for a checkout station, or the company may need tables and wall brackets for merchandise displays. In most cases, the tenant is responsible for purchasing and installing these fixtures, as well as making sure they are removed when the lease is up.

The fixtures are considered property of the tenant, but a lease may include terms that detail how these can be installed. A landlord may not want a fixture installed that could damage the walls or floors. Commercial leases may also specify what counts as a fixture, how they can be installed or whether a tenant can remove something already installed on the property.

Commercial lease agreements can and should include terms that are specific to the individual situation. The more detailed these contracts are, the less likely it will be that a dispute will arise that could cost both parties time and money. It is helpful for a commercial landlord or tenant to work with an experienced California real estate attorney when negotiating and drafting these agreements.