This refers to the capital that the landlord spends for the replacement or repair of major property components not located inside of the tenant premises. Those include structural features such as a new deck, elevators, a parking structure, or simple improvements such as new windows or paint. These expenditures are based on a property’s wear and tear, for which the landlord has to replace in order to keep the property in good condition.
Capital Expenditures (CapEx)
This refers to the capital that the landlord spends for the replacement or repair of major property components not located inside of the tenant premises. Those include structural features such as a new deck, elevators, a parking structure, or simple improvements such as new windows or paint. These expenditures are based on a property’s wear and tear, for which the landlord has to replace in order to keep the property in good condition.
