Charleston County office lease: estimated payment true-up case study
A public-record government office case study showing $3,216 in apparent overcharges from an inflated year-end reconciliation true-up billed above the computed tenant share.
What happened
Charleston County leased 5,000 square feet at 4000 Faber Place Drive under a triple-net lease with a 10% pro-rata share. Monthly CAM estimates of $3,000 added up to $36,000 paid during the year. When the 2024 reconciliation arrived, the landlord billed a $8,500 true-up. The math from the building expense ledger told a different story: total operating expenses of $412,837.60 at 10% put the correct tenant share at $41,283.76, leaving a correct true-up of $5,283.76. The landlord collected $3,216.24 more than the numbers support.
Findings from the pipeline
Rule 5: Gross-Up Violation
medium confidence
$0
'Real Estate Taxes' is classified as tax (a fixed cost) and should not be grossed up. Fixed costs do not vary with occupancy; any gross-up factor applied inflates this charge. Billed: $23,614.24. Exact overcharge requires manual review (occupancy rate not available in single-audit mode).
Math proof
item='Real Estate Taxes', amount=23614.24, classification=tax (fixed cost - must not be grossed up); exact overcharge requires original occupancy rate (manual review)
Statement references
- Real Estate Taxes
Rule 18: Estimated Payment True-Up Error
high confidence
$3,216
True-up billed (8500.00) exceeds expected (5283.76) by 3216.24
Math proof
Tenant share: 412837.60 x 0.10 = 41283.76; Estimates billed: 36000.00; Expected true-up: 41283.76 - 36000.00 = 5283.76; Landlord billed: 8500.00; Overcharge: 8500.00 - 5283.76 = 3216.24
Statement references
- Reconciliation True-Up
Lease evidence
- Pro-rata share fixed at 10.00% (5,000 SF / 50,000 SF).
- Triple-net structure with annual CAM reconciliation.
- Monthly estimates of $3,000 collected during the year.
- True-up methodology: actual tenant share minus cumulative estimates paid.
Why this matters
Year-end true-up errors are easy to miss because tenants rarely see the building expense ledger. The landlord presents a single line showing what you owe, and most tenants pay it. The fix is straightforward: multiply total building expenses by your pro-rata share, subtract what you already paid in estimates, and compare. When the number the landlord sends does not match, that gap is the overcharge. Government tenants are not exempt, and this case shows a routine municipal lease producing the same kind of billing error found in private-sector leases.
Dispute letter draft excerpt
Re: CAM Reconciliation Dispute, 4000 Faber Place Drive, Lease Year 2024. The automated review identified an apparent discrepancy of $3,216.24 in the year-end true-up based on actual building expenses and estimates already paid.
Related Resources
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Public-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by CVS, Target, or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.