What We Find in CAM & NNN Audits
Most commercial tenants overpay on CAM and NNN charges — not because landlords are malicious, but because the billing is complex, inconsistent, and rarely challenged.
Our lease audits focus on the most common (and expensive) areas where charges drift outside what your lease actually allows.
CAM Reconciliation Errors
CAM charges are usually estimated throughout the year, then “trued up” in a reconciliation statement — one of the most error-prone parts of a lease.
- Expenses charged outside CAM definitions
- Duplicate line items year over year
- Costs shifted between properties
- Late reconciliations after audit windows close
Administrative & Management Fee Abuse
Many leases allow “reasonable” admin fees — without defining what reasonable actually means.
- 10–20% admin fees layered onto CAM
- Fees applied to insurance or taxes
- Charges exceeding lease caps
Improper Capital Expenditures
CAM is intended for operating expenses — not long-term improvements.
- Roof replacements passed through as CAM
- HVAC upgrades billed in a single year
- Structural work improperly allocated
Insurance & Tax Pass-Through Issues
Insurance and taxes are often the fastest-growing NNN components.
- Premium increases not limited by lease language
- Tenant charged for landlord-level coverage
- Taxes reassessed after purchase or refinance
Pro-Rata Share & Allocation Errors
Your CAM and NNN share must follow a specific formula defined in your lease.
- Incorrect rentable square footage
- Vacant space allocated to tenants
- Common areas misclassified
These issues add up quietly —until they’re expensive
A few thousand dollars here, a few percent there — year after year. Our audit shows what your lease actually allows.
What CAM Errors Can Actually Cost
Even small miscalculations in CAM reconciliations can compound quickly. For example, a 7,500 sq ft retail tenant paying $6.50 per sq ft in CAM charges could see $3,000–$12,000 in avoidable exposure annually if administrative fees, capital expenses, or pro-rata allocations are applied incorrectly.
Larger tenants may face significantly higher exposure — especially when audit windows close and overcharges continue year after year.
Example: Retail Tenant CAM Overcharge Review
An 8,200 sq ft retail tenant in a multi-tenant shopping center was paying approximately $7.10 per sq ft in CAM charges. After reviewing the lease language and reconciliation statements, we identified:
- 15% administrative fees applied to insurance and tax categories not permitted by the lease
- Capital roof repairs billed in a single year instead of amortized
- Incorrect pro-rata allocation including vacant space
Estimated avoidable exposure: $11,400 in a single reconciliation year.
The tenant was still within the 90-day audit window and was able to raise the discrepancies before the charges rolled into future years.
Learn More About CAM & NNN Lease Issues
Dive deeper into specific topics affecting commercial tenants:
What This Means for You
These issues rarely appear as a single large mistake. Instead, they accumulate quietly — until tenants are overpaying year after year.
Our audit helps you decide whether it’s worth pursuing corrections before audit windows close.