Operating Expense (OpEx)

Ongoing costs associated with operating and maintaining a property. OpEx are made up of three main components:

• Property taxes: taxes charged to the property owner by governing bodies
• Insurance: cost to insure the building, which is typically required by the lender financing the property
• Common area maintenance fees: include management fees, building maintenance and repairs, utilities, administrative fees, management salaries and more. These fees may vary by property type and landlord.

OpEx do not include debt service, capital expenditures (CapEx), property marketing costs, capital reserves for future large repair projects, leasing commissions or tenant improvement allowances.