Full Definition
Operating expenses are recurring costs required to run a commercial property: property taxes, insurance, repairs and maintenance, utilities, trash, landscaping, property management, legal, professional services. OpEx excludes debt service, capital expenditures, and depreciation. In NNN leases, the tenant pays most or all OpEx directly.
Related Terms
NOI (Net Operating Income)
Annual income from a property after deducting operating expenses — before debt service, taxes, and capital expenditures.
CAM (Common Area Maintenance)
Tenant's proportionate share of expenses for maintaining common areas of a multi-tenant property.
CapEx (Capital Expenditures)
One-time investments to improve, replace, or extend the useful life of a property — roof replacement, HVAC, parking lot.