C

Capital expenditure recovery

The circumstances in which a landlord may pass some or all of a capital improvement cost through to tenants.

Capital expenditure recovery refers to the circumstances in which a landlord may pass some or all of a capital improvement cost through to tenants. Commercial leases frequently limit capital expense recovery to specific categories, such as improvements required by law or projects intended to reduce operating expenses.

Key questions

  • Is the capital expense recoverable?
  • Must it be amortized?
  • Over what useful life?
  • Is interest permitted?
  • Is recovery limited to documented savings?
  • Is the expense subject to a CAM cap?

How REAL helps

REAL traces capital expenditure charges back to the lease and supporting financial records to identify unsupported or incorrectly calculated recovery.

REAL

See how capital expenditure recovery is handled across 2,236 leases.

REAL extracts and structures this field from your documents so your team can act on it — no manual abstraction required.

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