What is an “Up-Fit” In Real Estate?

During real-estate pre-licensing, there is not much said about what an “Up-Fit” is or if it is really important. It was on the test that I took so I do think it is a topic that you need to have a little knowledge about.

 

For a business to survive and grow in a market then they must always be in a constant state of change. A business may need to change because a new visual aesthetic is desired, corporate mandates, or for safety and building code requirements. These changes are called an “Up-Fit” and are done by the landlord to prepare for the tenants’ occupancy. Some examples of an “Up-Fits” are walls or sinks that need to be installed for a new tenant that wants to open a new hair salon.

 

Do not confuse “Up-Fit” with trade fixtures or chattel fixture. While an “Up-Fit” is a change made by the landlord, a trade fixture is a change that is made by the tenant. A trade fixture must be article owned by the tenant and attached to a rented space for use in conducting business. An example of a trade fixture would be if the salon owner bought and installed special types of salon chairs for their business.