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CAM Shortfall Calculator

CAM shortfalls eat NOI when vacancies or expense caps bite. This calculator sizes unrecovered common area costs.

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%
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$

CAM shortfall

$45,400

Occupancy gap

$50,400

Total recovered

$374,600

How the math works

Shortfall = CAM − (occupied share recovered + gross-up − cap loss). LL's unrecovered expense.

Gross-up language on variable expenses typically lets LL recover full CAM as if 95% occupied. Check every lease; most LLs leave 1-3% of CAM on the table by under-grossing.

How to Use

  1. Enter actual CAM expenses.
  2. Enter occupancy %.
  3. Enter expense cap lost.
  4. Enter gross-up adjustment.
  5. Read shortfall.

Frequently Asked Questions

Why shortfall?

Vacant space doesn't pay CAM. Expense caps truncate above threshold. Gross-up language can help but is often limited. Result: LL absorbs gap between collected and paid.

Typical size?

2-8% of CAM expense annually. Bigger in sub-85% occupancy or tenant mix with heavy caps. Track monthly, not just at reconciliation.

Mitigation?

Aggressive gross-up language. Tighter expense caps with fewer tenants negotiating them. Lease renewal pushbacks on caps. Monitor monthly accruals.

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.

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