CAPEX vs OPEX: Understanding the Key Differences and Their Impact on Real Estate Investments

CAPEX includes major structural improvements, renovations, new equipment purchases, and asset upgrades that add long-term value. Examples include replacing an outdated HVAC system with a more efficient model or renovating the lobby of a corporate building. These costs are capitalized on the balance sheet and depreciated over time.

OPEX covers day-to-day operational expenses, such as cleaning, security, routine maintenance, utilities, and equipment service contracts. In office buildings, facilities management, including waste disposal, landscaping, and reception services, also fall under OPEX.

When a company — in this case, a tenant — chooses a business model based on OPEX, it can gain several advantages, not only from a financial standpoint but also in its day-to-day operations.

Cash preservation is one of the first benefits a tenant experiences when opting for the OPEX model. By avoiding upfront investments — such as in furniture and computers — the company is able to maintain cash reserves. Additionally, leasing equipment prevents the need to allocate budget for maintenance or replacements.

Another key advantage is cost predictability. Unlike CAPEX, which often requires one-off investments, OPEX can offer more consistent and foreseeable expenses. Simplified tax and accounting treatment is also a major draw, as these costs are typically fully deductible since they are classified as fixed operational expenses.

With the rise of models such as flexible offices and lease agreements that include bundled services, the line between CAPEX and OPEX has become increasingly blurred.

Solutions like leasing fully furnished and tech-equipped spaces allow companies to reduce upfront capital expenditures, shifting part of these costs to OPEX and making financial planning more predictable, as highlighted by Telelok, a company that specializes in this type of service.

“Furniture rental is directly linked to OPEX. Contracts can range from 12 to 60 months, and in some cases, for short-term operations, they can start at just seven days. All of these contracts include corrective maintenance during the rental period, ensuring high availability of use. It’s also worth noting that the longer the contract term, the lower the monthly fee,” the company explains.

Another factor that highlights the importance of this shift is the growth of coworking spaces across Brazil. Depending on the plan, companies can avoid significant CAPEX, focusing almost entirely on OPEX. According to SiiLA’s Market Analytics platform, the coworking segment grew from 242,000 square meters at the end of 2019 to 252,000 square meters by the end of 2024.

Telelok also pointed out another benefit: “Choosing to lease furniture removes the direct responsibility for asset management and maintenance from the shoulders of the facilities team,” the company concludes.