Which of the following is an example of Maintenance CapEx?

Maintenance CapEx, or Maintenance Capital Expenditures, refers to expenditures that are necessary to maintain the current operational capacity of a property instead of expanding it. These costs are essential to keep the property in good working condition and preserve its value over time without significantly enhancing or expanding its functionality.

In this context, replacing carpets is classified as Maintenance CapEx because it is a necessary upkeep measure that restores the existing condition of the property. It addresses wear and tear from regular use and does not alter the size or significantly enhance the function of the space. This maintenance is crucial for ensuring tenant satisfaction and upholding property standards.

In contrast, installing new landscaping, adding a new wing, and renovating the lobby all represent significant changes or enhancements that go beyond mere maintenance. Installing new landscaping can improve aesthetics and property value but does not keep existing systems functioning. Adding a new wing expands the property’s space and capacity, while renovating the lobby may modernize its appearance but also tends to enhance the property's functionality or appeal. These actions are considered capital expenditures but are more aligned with improvements and additions, rather than purely maintenance tasks.