Property Management

A tenant in a Nashville commercial space wants to install custom interior improvements. The lease should address who owns the improvements when the lease terminates. This is called the:

AFixture vs. trade fixture distinction
BTenant improvement ownership or 'surrender' clause✓ Correct
CCommercial conversion clause
DModification restriction provision

Explanation

Commercial leases should specify what happens to tenant improvements at lease end — whether they revert to the landlord, must be removed by the tenant, or can be purchased by the landlord. This is a critical negotiating point in commercial leases.

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