Operating Expense Recovery Calculator

OpEx recovery measures pass-through efficiency. This calculator reports it.

Total OpEx

CAM recovered

Direct pass-through

Utilities reimbursed

Recovery ratio %

90.94%

Total recovery

$773,000

Landlord absorb

$77,000

How the math works

Total recovery = CAM + direct pass-through + utilities. Ratio = recovery / OpEx.

A 91% recovery ratio on $850k OpEx means $75k landlord absorb annually — the cost of vacancy, caps, exclusions, and collections gaps. On a cap-rate math, that $75k drag reduces NOI and value (at 6.5% cap) by ~$1.15M in enterprise value. Recovery discipline is real value creation.

How to Use

Enter total OpEx.
Enter CAM recovered.
Enter direct pass-through (taxes, insurance).
Enter utilities reimbursed.
Read total recovery and ratio.

Frequently Asked Questions

Lease structure matters?

NNN: 95-100% recovery target. Modified gross: 30-70% (base year exclusion). Gross/full-service: 0-20% (bump clause only). Multifamily: 0% (rents inclusive). Each structure has different recovery profile.

Recovery less than 100%?

Vacancy (landlord absorbs pro-rata). Caps (above cap absorbed). Exclusions (non-recoverable items). Base year carve-outs. Uncollected billback. Typical shortfall 5-20% even under aggressive NNN.

Stabilized vs value-add?

Stabilized NNN: target 95%+ recovery. Value-add: 60-85% recovery during lease-up. Recovery ratios trend upward as building stabilizes — key metric in value-add pro forma.

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.