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Category: CAM Reconciliation
The Covid-19 pandemic has had a disruptive impact across every industry sector but hardly in the way, it has impacted the real estate sector. The commercial leasing business especially has been severely impacted with businesses largely adopting the work-from-home approach, most commercial buildings have remained mostly unoccupied since March 2020. While the sector is starting
Even though common area maintenance (CAM) reconciliation is one of the critical processes in commercial leasing that contributes to accurate accounting and cashflow, it remains a challenge for most. Because reasons vary as to why CAM reconciliation is a source of stress and anxiety, there are no one-size-fits-all solution for simplifying this process. Even the
This our second and last blog post of the series CAM reconciliation FAQs. In this post we will walk you through some of the key aspects of CAM reconciliation that can help you streamline the task. How to calculate CPI within CAM reconciliations? According to the Bureau of Labor Statistics (BLS) website Consumer Price Index
In a commercial real estate leasing common area maintenance (CAM) charges are operating expenses that play a key role in maintaining a healthy cash flow and the property. CAM reconciliation, while a straightforward process on paper, is one of the most tedious and complex tasks in practice. In this two part blog series we have
Common area maintenance (CAM) expenses are operating expenses of a building that are reconciled annually and billed to the tenants in case of a shortfall. CAM reconciliation entails adding up all expenses incurred throughout the year and tallying it against the estimated CAM charges billed to the tenants. While the processes may seem simple it
Common area maintenance (CAM) charges play a key role in the upkeep of the commercial property. CAM fees, as known, as charges passed on to the tenants by the landlord that accounts for the operating expenses of a property. Typically, CAM charges are in Triple Net leases, that also includes property taxes and insurance. CAM
Common area maintenance (CAM) charges play a key role in managing and maintaining commercial properties. CAM charges are not standardized and vary from one property/landlord/market/location to another. To maintain transparency with tenants these expenses are allocated appropriately and proportionately, and it is therefore important to follow the lease terms and guidelines and ensure accurate calculations
Common Area Maintenance (CAM) reconciliations for commercial properties can be a nerve-racking task. It is given that commercial real estate accounting can be challenging and tricky if not done diligently and timely. This is one area that is prone to human errors. Due to inaccurate and incomplete CAM reconciliations landlords not only suffer huge negative
Common area maintenance (CAM) reconciliations are important as the money recovered is used to operate and maintain the property. Commercial property CAM reconciliation is complex, arduous and time-consuming task. It demands focused and meticulous review of multiple leases and accurate calculation of tenant share based on lease terms, granted modifications and other pre-determined expense caps.
The US Law defines CAM charges as the expense that a tenant is expected to pay up on a pro-rata basis towards the annual maintenance, repair and operation of common utility areas, as incurred by the landlord / property owner. In the real scenario, CAM charges are basically whatever the landlord has mentioned in the
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