Expense Stops in Commercial Real Estate
In a full service gross lease, the tenant pays a base rental rate, and landlord is typically responsible for paying any additional expenses (such as CAM fees), except for those that go above a specific amount, called an expense stop. Any expenses that exceed the expense stop then become the responsibility of the tenant.
OpEx: Operational Expenditures in Commercial Real Estate
Operating expenditures are ongoing costs incurred in the operation and maintenance of a commercial property. Unlike CapEx, OpEx is fully tax-deductible in the year they are incurred.