Operational Expenditures

Expense Stops in Commercial Real Estate

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

OpEx: Operational Expenditures in Commercial Real Estate

Operating expenditures (OpEx) are ongoing costs incurred in the operation and maintenance of the commercial property. Unlike CapEx, OpEx is fully tax deductible in the year they are incurred.