Are you aware that CAM expense recoveries account for approximately 30 percent of gross revenue for commercial real estate companies?

Common area maintenance (CAM) expense is a key component of commercial leasing that has a significant impact on the net operating income (NOI) of a property as well as the total rent amount. Reconciliation of CAM payments plays a critical role in property accounting and overall cash flow. In practice, CAM reconciliation appears to be a straightforward process. However, complex lease structures, a lack of standardized practices, stringent deadlines, variable factors, manual processes, and overworked property managers make the process tedious, challenging, and highly error prone. Incomplete or inaccurate CAM reconciliations often result in significant losses or tenant disputes. When these losses stack up over the years or across a vast property portfolio, it can end up costing landlords/property owners hundreds of thousands of dollars.

Considering the fact that timely and accurate CAM reconciliation is key to maximizing cash flow and maintaining a good tenant relationship and financial stability, organizations, irrespective of their size, should consider outsourcing this service. Collaborating with a specialized service provider who can dedicatedly focus on managing CAM reconciliation can help save you substantially in costs as well as time, improve cash flow, boost operational efficiency, and facilitate transformational and strategic initiatives.

Download our white paper  to learn how streamlining CAM reconciliation can help you optimize cash flow and property value and allay any litigation risks, while ensuring strict compliance and a profitable relationship with tenants.