Lease Reconciliations are a critical process in commercial real estate, particularly for tenants and landlords with Net Leases. In a Net Lease, the tenant is responsible for paying key real estate expenses in addition to the base rent: property taxes, building insurance, and maintenance costs. Lease/NNN/CAM/OER Reconciliation is the process of balancing and adjusting these expenses to ensure that both the landlord and the tenant are fairly contributing according to the actual costs incurred and in agreement with the terms of the Lease.

CAM Audits (also known as Lease Audits, OER Audits, NNN Audits) are our efforts to confirm that charges being passed through to tenants match the terms of their lease.

For example, CRE Brokers and knowledgeable tenants negotiate details to help protect tenants from certain costs and calculation methods which can result in higher costs for the tenant. (See our Insights article here.) However, often times Landlords and property managers will default to their own calculation methods or spreadsheet which yield the highest collections regardless of the language buried deep in the respective lease.

In our experience, more than half of Tenants are being incorrectly overcharged CAM/NNN/OER costs.