CAM Reconciliation Example: A Worked Calculation
A 24,000 SF retail center had $100,000 of recoverable CAM in the year, including $32,000 of variable costs (janitorial, common electric, management). Average occupancy was 80% and the leases gross up to 95%.
Gross-up: $32,000 × 95 ÷ 80 = $38,000, so the pool grows by $6,000 to $106,000.
Tenant: 2,400 SF (10%), full year, 5% non-cumulative cap on controllable CAM, 10% admin fee, paid $875/month in estimates.
| Building CAM expenses | $100,000 |
|---|---|
| Gross-up of variable expenses to 95% | +$6,000 |
| Pool total | $106,000 |
| Tenant share 10% (2,400 ÷ 24,000 SF) | $10,600 |
| Less cap reduction (controllable portion over 5%) | −$300 |
| Plus 10% admin fee | +$1,030 |
| Tenant CAM for the year | $11,330 |
| Less estimates paid (12 × $875) | −$10,500 |
| Balance due | $830 |
The cap: last year the tenant's controllable CAM was $7,700; 5% more is $8,085. This year's controllable share came to $8,385, so $300 is cut. The admin fee is then applied to $10,300.
Next year's estimate: $11,330 × 1.03 ÷ 12 ≈ $972/month (assuming 3% growth). Run your own numbers in the calculator — load the sample property to see a full statement.