TRENDING: CreateTO Flexes Sites Under ‘Toronto Builds’ Framework

Capital Expenditures

Learn about capital expenditures (CapEx) in Canadian real estate — what they are, how they’re planned, and why they matter for asset management.

Capital Expenditures

June 27, 2025


What are Capital Expenditures?

Capital expenditures (CapEx) refer to major expenses incurred to acquire, upgrade, or extend the life of a property or its major systems, beyond routine maintenance.

Why Capital Expenditures Matter in Real Estate

In Canadian real estate, CapEx impacts budgeting, reserve funds, tax planning, and asset valuation for both residential and commercial properties.



Examples of capital expenditures include:
  • Roof replacement
  • Elevator modernization
  • Building envelope repairs
  • Major HVAC system upgrades



CapEx is typically planned for in condo reserve funds or landlord capital budgets, and may affect rent increases, special assessments, or investor returns.



Understanding CapEx is key to long-term property management and investment planning.

Example of Capital Expenditures in Action

The condo board allocated reserve funds for a capital expenditure project to replace aging windows throughout the building.

Key Takeaways

  • Major property upgrades or replacements
  • Distinct from routine maintenance
  • Planned in reserve funds or capital budgets
  • Impacts value, rent, and assessments
  • Important for tax and investment planning

Related Terms

Additional Terms

Construction Loan

A construction loan is a short-term, interim financing option used to fund the building or major renovation of a property, with funds disbursed in. more

Certificate of Occupancy

A certificate of occupancy is an official document issued by a municipal authority confirming that a building complies with applicable codes and is. more

Bylaw Variance

A bylaw variance is official permission granted by a municipal authority allowing a property owner to deviate from local zoning or building bylaw. more

Absorption Rate

Absorption rate is a metric that measures the rate at which available properties are sold or leased in a specific market over a given period.. more

Corporate Restructuring

Corporate restructuring refers to the reorganization of a company’s operations, assets, or liabilities, often under court supervision, to improve. more

Consumer Proposal

A consumer proposal is a formal, legally binding agreement in Canada between an individual and their creditors to repay a portion of their debt over. more

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