Page 14 - Commercial Lease FlipBook 2020
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• CAM is most likely paid on a pro rata share based on leasable square footage.
• A budget is usually prepared to estimate CAM and then tenants pay their share of
the CAM estimate in 12 equal monthly installments over the calendar year. The CAM
estimate can usually be found in the commercial lease for the first year. If not, an
estimate will need to be established and approved by the client.
• A reconciliation is usually done annually (during the first quarter of the year) to true
up tenants actual costs vs. payments from the previous year.
