Controllable CAM Cap Breach Calculator

Controllable CAM caps limit landlord recovery to a fixed percent growth — breach means absorbed overruns.

Base year controllable CAM

Annual cap %

Years since base

Current year controllable CAM

Breach (landlord absorbed)

$38,370

Capped amount

$911,630

Actual over cap %

0.04%

How the math works

Capped = base × (1 + cap)^years. Breach = max(0, actual − capped).

$750k × (1.05^4) = $911k capped. $950k actual − $911k = $39k breach absorbed by landlord.

How to Use

Enter base year controllable CAM.
Enter annual cap %.
Enter years since base.
Enter current year controllable CAM.
Read cap amount and breach.

Frequently Asked Questions

Cap mechanics?

Controllable CAM (janitorial, management, repair, etc.) typically capped at 4-6% annual growth compounded. Non-controllable (taxes, insurance, utilities) uncapped. Each year, landlord recovers min(actual, capped amount). Excess absorbed by landlord.

Typical cap levels?

Institutional: 3-5% year-over-year, 4% most common. Tenant-favorable: 3% flat or CPI-capped. Landlord-favorable: 6-7% or cap reset on renewal. Caps apply compounded on base year; over 10 years, 5% cap = 63% total growth allowed.

Impact?

High-inflation environments (2021-23) hit landlord hard — actual controllable grew 8-12% but cap allowed 5%. Difference absorbed. Well-structured leases include a CPI+X% cap to track inflation. Lenders scrutinize cap exposure in office acquisitions.