What is an investor's primary concern when it comes to capital expenditures?

An investor's primary concern regarding capital expenditures centers on maintaining and replacing outdated building systems. This is crucial because these systems—such as HVAC, plumbing, electrical, and structural elements—are vital to the operational integrity and efficiency of a property. By ensuring that these systems are up to date and in good working order, investors can significantly enhance the value and attractiveness of the property to current and potential tenants.

Outdated systems can lead to increased costs in repairs and maintenance, higher energy consumption, and potential safety hazards, all of which can adversely affect tenant satisfaction and retention. Moreover, modernizing these systems can also contribute to sustainability goals, making the property more appealing in today's environmentally conscious market. Thus, focusing on maintaining and replacing outdated building systems is essential for protecting an investor's financial interests and ensuring that the property remains competitive in the leasing market.