Recoveries Shortfall Calculator

Recoveries often under-collect billable cost. This calculator sizes the gap.

Billable expense

Vacancy %

Cap shortfall

Uncollectible recoveries

Total shortfall

$189,000

Vacancy shortfall

$116,000

Shortfall % of billable

13.03%

How the math works

Shortfall = vacancy + cap gaps + uncollectibles. Compare to gross billable.

Portfolio-level shortfalls under 5% of billable = strong collection/structure. 5-10% = typical. 10-15% signals caps and vacancy eating budget. Above 15%: investigate lease structure and underwriting assumptions.

How to Use

Enter billable expense total.
Enter vacancy % during year.
Enter capped recoveries dollar.
Enter uncollectible recoveries dollar.
Read total recovery shortfall.

Frequently Asked Questions

Why shortfall?

Vacancy (no tenant to bill). Recovery caps in some leases (year-over-year growth limits). Bad debt (tenant not paying). Excluded categories (caps on security, capital). Each chips away recoveries vs gross billable.

Typical shortfall?

Stabilized office: 5-10% shortfall of billable. Retail lifestyle: 8-15%. Value-add: 15-25%. Each combines vacancy + caps + uncollectibles. Budget shortfall explicitly; underwriting 100% recoveries misses reality.

Reduction?

Push uncapped gross leases. Reduce exclusions via negotiated renewals. Improve collections process. Bill triple-net structure on new leases. Each structural change reduces long-term shortfall at portfolio level.