Capital planning and reserves

Capital expenditures — roofs, RTUs, elevators, parking, major TI — sit below NOI but dominate real cash flow in the years they land. A 5/10-year capital plan built from the equipment register (ages, expected lives, conditions, repair patterns) converts lumpy surprises into scheduled, fundable projects.

Label the basis of every number: vendor quote (firm), consultant estimate (scoped), or planning allowance (order of magnitude). Mixing them silently is how capital plans lose credibility. Group work into mobilizations (one crane day, one roofing season) — sequencing is real money.

Fund it: replacement reserves per SF per year (often lender-required), or planned capital calls. Underfunded capital shows up eventually as emergency pricing, tenant disruption and deferred-maintenance discounts at sale — the most expensive financing there is.