What is the Difference Between Capital Expenses and Operating Expenses?

Capital Expense vs Operating Expense, City with a River Skyline

Running a commercial real estate asset on a day-to-day basis can be expensive. As such, it is important for operators to manage costs relative to rental income to ensure that the given property is profitable. From a management standpoint, costs can be grouped into two buckets: Operating Expenses (or “OpEx”) and Capital Expenses (or “CapEx”). […]