Expense Pool Leakage Calculator

Leakage in the expense pool erodes NOI.

Total expense pool

Cap leakage %

Base year leakage %

Exclusion leakage %

Total leakage

$337,500

Leakage % of pool

0.1%

Capturable (50% recovery estimate)

$168,750

How the math works

Total leakage = pool × (cap + base year + exclusion) %. Capturable = 50% recovery estimate.

$4.5M × 7.5% = $337k total leakage. Capturable $169k — focus systematic recovery effort.

How to Use

Enter total expense pool.
Enter cap leakage %.
Enter base year leakage %.
Enter exclusion leakage %.
Read total leakage.

Frequently Asked Questions

Leakage sources?

CAM caps (tenant pays up to 5% increase; landlord absorbs above). Base year exclusions (only increases over base billed). Pro-rata calculation errors. Utility baseline measurements missing. Capital exclusions not defined carefully. Admin fee calculations — each 1-5% of pool.

Typical levels?

Well-administered portfolio: 3-5% leakage. Average: 5-10%. Poor: 10-20%. Office/retail with caps common: higher leakage than NNN industrial. Focus on largest line items (utilities, cleaning, management) for highest-impact reduction.

Closing the leaks?

Regular lease abstract reviews. Standardized CAM billing templates. Quality gross-up calculations for vacancy. Capital item classification accuracy. Admin fee properly billed. Stepped-up audit frequency. Closing 5% leakage on $5M pool = $250k NOI annually.