Annual common area maintenance (CAM) reconciliation is one of the most tedious processes that is notoriously error prone. Despite the fact it is also one of the processes that is often overlooked by commercial property owners, resulting in errors in reconciliation that over time results in thousands of dollars in losses. Reconciling CAM expenses against
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