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.
CapEx: Capital Expenditure in Commercial Real Estate
Capital expenditure or "CapEx" are the funds used to acquire, upgrade or repair the property. It also includes the acquisition of equipment for said property. An expenditure is considered a CapEx if it is a new purchase or extends the life of the property. For example, fixing the roof, installing a furnace or painting the building.