capex assumptions on commercial?
before buying, what type of yearly capex assumptions are standard for a commercial office building?

[{"id": "cf3yvx7", "text": "Depends on the condition of the building and what you mean by capex. \n\nSome basic assumptions are 2-3% of gross rent p.a. to keep a decent building in decent shape. \n\nAre you including tenant fit out/incentives as capex? Because then you need to look at your local market. ", "replies": [{"id": "cf42qrt", "text": "i'm not.  just basic maintenance assumptions on a 40 year old building that just went through a large amount of renovations.\n\ni'm trying to determine a reasonable amount of cash on hand to fix unexpected events.\n", "replies": [{"id": "cf4cqc9", "text": "Without more details, I'd say accrue 2-3% of GR into a reserve account and you should be able to pay off most of any big tickets that pop up with some help from ongoing NOI at the time. If some renovations were done, they should have put together a bunch of capex budgets which you can compare to the works  done and find the remaining spend required. No matter how much you accrue you'll be in trouble if something like the roof needs work in a couple of years (assuming they left it out of recent renovation). \n\n\n", "replies": [{"id": "cf4qczi", "text": "thanks.  yes, something major would be my biggest concern given the leverage in the transaction.  it's what might keep me from moving forward... ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cf47m0j", "text": "Basic reserves are .10 to .25 psd depending on age and size.  A PCA will give you a detailed 10 year forecast.", "replies": [], "depth": 1}]