CAM Reconciliation True Up Calculator

CAM estimates vs actuals need reconciling. This calculator trues up.

Annual CAM estimated

Actual CAM incurred (total property)

Tenant pro-rata share %

True-up (owed or refund)

$4,075

Tenant actual share

$46,075

Over/under estimate %

9.70%

How the math works

Tenant actual share = total actual × pro-rata. True-up = actual share − estimated billed.

True-ups within ±5% of estimate are normal. Consistent under-billing (10%+ true-ups owed) suggests estimates should be raised. Consistent over-billing (10%+ refunds) erodes tenant trust. Aim for tight estimation to minimize year-end surprise.

How to Use

Enter annual CAM estimated billed.
Enter actual CAM incurred.
Enter tenant's pro-rata share %.
Read tenant true-up owed (positive) or refund (negative).

Frequently Asked Questions

Process?

Monthly estimates billed through year. Within 60-120 days post-year-end, landlord reconciles actual expenses and tenant's pro-rata share. Owed amount billed; overage refunded or credited to next year. Supporting schedule provided.

Disputes?

Common over: capital vs OpEx categorization, related-party service markups, above-market vendor pricing, exclusions, management fee basis. Larger tenants negotiate audit rights (12-24 months). Mid-size often accept lump reconciliation without audit.

Industry benchmarks?

Office CAM: $8-18/SF depending on class and market. Retail CAM: $4-12/SF. Industrial: $2-5/SF. Typical annual growth 3-5%. Spikes above 8% trigger tenant scrutiny — landlord should pre-explain (tax jump, roof repair, new initiative).

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.