Encyclopedia
Fixturing period
Time at the start of a lease when the tenant can build out the space before paying basic rent. What's payable during it depends on the lease.
For example: A restaurant negotiates a fixturing period long enough to cover permits and construction. (Illustration only, not a real deal.)
This is a general industry term with no single official definition. Your lease or contract wording controls.
Example only, not a real client. Say you lease a restaurant space that needs a full kitchen build. You negotiate a fixturing period where you can build without paying base rent. Construction runs long, but because your period was set realistically, you open before rent starts.
What I’d tell a friend
Ask for a fixturing period that matches the real time your build will take, including permits.
Why it matters to you
It's time to build out before full rent starts. If it's too short, you pay rent on a space you can't use yet.
How to use it in your deal
Tenants should negotiate a fixturing period that matches realistic permit and construction timelines, which can be long for restaurants, medical or other specialized uses. Ask whether you pay operating costs and utilities during fixturing, since many leases require it.
Make sure the period starts only when the landlord delivers the space in the agreed condition, and that it extends if the landlord's work is late. Check whether the period ends on a set date or when you open, whichever comes first. Landlords should require insurance, contractor approvals and lien protection during fixturing.
Permits often take longer than expected, so build in buffer or ask for an extension right tied to permit delays. Buyers should check rent rolls for tenants still in fixturing. Get the landlord's sign-off on your plans early, so approvals don't eat into the period. Keep a record of the delivery date in writing, since everything else counts from it.
If your contractor finishes early, you may be able to open early without starting rent; ask for that in the lease.
Mistakes I see
Too short a period. Not tying it to delivery. Forgetting operating costs.
In BC and Vancouver
Lease terms govern; building permits come from the municipality.
Official sources: Commercial Tenancy Act (BC Laws) · Builders Lien Act (BC Laws)
What it is
A fixturing period is time before rent starts when you can build out your space. Base rent is often waived, though you may still pay utilities or additional rent.
Landlords offer it because a finished, open tenant benefits the property.
Getting it right
Base the length on a realistic schedule, including permits, which can take longer than the build. Ask that the period extend if the landlord’s work or approvals cause delays.
Confirm in writing whether additional rent applies during the period and when rent starts.
Questions to ask before you sign
- How long is fixturing?
- When does it start?
- What do I pay during it?
- Can it be extended?
Keep reading
Related terms: Tenant improvements (TI), Tenant inducement, Effective rent
- Negotiating a commercial deal in BC
- Leasing commercial space in BC: a tenant's guide
- Zoning, permits and licences for commercial space in Vancouver
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.