Real Estate Talk:
Retail fixturing

Now the lessee has the keys, and the next step is fixturing and preparation

By Joseph Marovitch

February 12, 2026

The first four steps have been completed:

• The property search, based on foot traffic and/or destination location, depending on the products or services being sold, the area’s age group, affluence, accessibility, and square footage
• Submission of the letter of intent or promise to lease to the lessor
• Discussion of terms, time periods, protocols of the unit, the lessee’s business plan and financing, investment in the space and due diligence by the lessor, checking credit and references
• Preparation of the lease, lessee’s examination of the lease, revisions if required, and signing of the lease

Now the lessee has the keys, and the next step is fixturing and preparation. There are several steps to fixturing that begin before, continue during, and end after.

The basic rules are:

1. All changes must conform to municipal bylaws
2. All changes should conform to the building’s design
3. Changes must be in good taste as defined by the lessor
4. A plan must be submitted to the lessor for approval before construction begins

When a lessee, who is a startup, thinks of fixturing, they think of preparing the space to suit the business’s needs, whether it is a hair salon, grocery store, or clinic. However, there is pre-preparation prior to physical fixturing.

When a lessee, who is a startup, thinks of fixturing, they think of preparing the space to suit the business’s needs, whether it is a hair salon, grocery store, or clinic, for example. However, there is pre-preparation prior to physical fixturing.

Before

• Prepare a clear concept of what will be done to the space
• If the preparation consists of cosmetic changes only, such as paint, wallpaper, shelving, and flooring, hire a designer and a contractor to determine the plans, what is and is not possible, and acquire a quote for the work and materials
• If the preparation consists of structural changes, such as removing or adding a wall, bathroom, or kitchen, or plumbing or electrical work, the lessee will require a designer, contractor, structural engineer, and architect to prepare plans that must be submitted to the city to obtain a permit to commence the work
• Acquire funding if it is not already in place
• Acquire liability insurance before a worker step in the space. Any accidents during construction or in the rented unit are liabilities that may be the responsibility of the lessee or their corporation.
• Submit the final plans to the lessor for examination and approval, and be ready in case adjustments are required

During

• Prepare access for the workers. This may require a permit from the city to block off space on the street for trucks
• Arrange for garbage and recycling removal
• Other lessees in the building must be made aware that construction will be taking place and how long it will take. Have them sign off on permission for the fixturing to take place. If this is not done and the construction disrupts their business, causing them to lose income, the new lessee can be held liable for damages.
• Supervise every step to ensure you are receiving what is paid for, that good materials are being used, and no shortcuts are taken
• Start pre-marketing to make residents and businesses aware that the business is opening soon. Pre-marketing should include the business name, what the business does, and the official opening date.

Pre-marketing can be done in several ways:

• Advertisements in local papers that are delivered to specific locations, such as apartment buildings, condos, homes, and businesses
• Social media: Facebook. LinkedIn, Instagram, Pinterest, and many others
• Flyers in local businesses and to concierges in condominiums
• A flashy sign in front of the unit
• Ads in newsletters of business owners you know, or the realtor you used to acquire the location

‘Pre-marketing is required for startup businesses, franchises, and established businesses that are expanding.’

Pre-marketing is required for startup businesses, franchises, and established businesses that are expanding. Basically, anyone in a new location that people aren’t yet aware of. The amount of money and time required for pre-market depends on whether the business is a start-up, a known franchise, or a known expansion.

• Start-up: 3 to 5 months and more investment
• Known franchise: 1 to 2 months if already a popular franchise, such as a Tim Hortons or Sports Experts
• Expansion: 1 to 3 months if an already known business that has been consistently offering good products and services

Once your location is known and your goods and services are considered quality, marketing and the marketing budget can slow down. This occurs based on good service, good product, and good location with ample traffic.

Always be aware of the golden rules:

• Consistent excellence in product and service spreads quickly and leads to success.
• Good product and service are average, and it provides a 50% to 65% chance of success.
• A bad or mediocre product and/or service is news that spreads like wildfire and shuts you down

The information in these articles is a summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.

Next week, we will look at the residential purchasing process in today’s volatile world – strategic, tactical, and risk-avoidance.

State of the market

The world has become even more complicated in the past week. The political landscape between the U.S. and Canada has eroded even further as Trump makes threats against Canada that appear to have no basis or backup, threatening to prevent the opening of a new bridge between the U.S. and Canada if Canada does not treat the U.S. better. The problem is that the bridge is already built and paid for by Canada and will exceptionally benefit the U.S. He also stated the deal with China will cause the dissolution of the NHL, the National Hockey League.

Whether these threats affect the Canadian economy is yet to be seen; no good can come from the ever-widening gap between the two countries. This is one of those wait-and-see moments of drama. However, every word from our world leaders does influence individual behaviour, economic policy and the real estate market in Quebec, as everywhere else.

‘For buyers, there are strategies to reduce risk and take advantage of lower prices. For sellers, there are strategies to increase buyer incentive and obtain maximum value for their property.’

As of now, rates remain low, and inventory is limited, driving property values higher. Buyers who would enter the market are hesitant. Rates may be low, but the buyer uncertainty is whether carrying costs will increase and property values decrease if more tariffs are applied, the possibility of international conflict, and the rising case of measles, once thought to be an eradicated disease, spreading in Canada and the U.S.

For buyers, there are strategies to reduce risk and take advantage of lower prices. For sellers, there are strategies to increase buyer incentive and obtain maximum value for their property.

For further discussion, leave a note or contact me directly.

Have a great week.

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Feature image: Pixabay

Other articles by Joseph Marovitch