Florida DMS Tallahassee: base year stop ignored case study
A public-record office lease case study showing $59,500 in base year overcharges: landlord billed full current-year operating costs without applying the 2018 base year deduction.
What happened
Florida DMS's Tallahassee lease establishes a 2018 base year at $850,000 in operating expenses. The 2022 reconciliation billed $68,600, which equals exactly 7% of $980,000 in full current-year expenses, with no base-year deduction applied. The correct charge was ($980,000 − $850,000) × 7% = $9,100. The landlord's failure to apply the base-year stop created a $59,500 overcharge.
Findings from the pipeline
Rule 7: Base Year Error
high confidence
$59,500
Correct base-year-stop calculation: (current_opex - base $850,000.00) × 7.0000% = $9,100.00. Billed: $68,600.00. Overcharge: $59,500.00.
Lease evidence
Base Year shall mean calendar year 2018, in which total Operating Expenses were $850,000. Tenant's share equals its Pro-Rata Share of the amount by which Operating Expenses exceed the Base Year amount. Section 5.2.
Section 5.2, page 9
Math proof
raw_base=850000.00, effective_base=850000.00, current_opex=980000.00, increase=130000.00, recoverable=130000.00, pro_rata=0.07, correct_billed=9100.00, billed=68600.00, overcharge=59500.00
Rule 7: Base Year Error
low confidence
$0
Base year to current year variance of 15% exceeds the 15% expected inflation threshold. Base: $850,000.00, Current: $980,000.00.
Math proof
base=850000.00, current=980000.00, variance=0.1529, threshold=0.15
Lease evidence
- 2018 base year at $850,000 operating expenses (Section 5.2).
- Tenant pays 7% of increases above base only.
Why this matters for your firm
Base year stop provisions are the tenant's protection against runaway operating cost growth, but they only work if the landlord applies them correctly. When reconciliation software is configured incorrectly or reset after a system migration, base year deductions can silently disappear, leaving tenants paying for the full current-year pool as if no base year existed.
Correction package excerpt
Request for Cooperative Review of Certain Line Items. The automated review flagged a base year stop omission of $59,500.00 : billed amount of $68,600 does not reflect the 2018 base year deduction required by Section 5.2.
Frequently asked questions
What findings did CAMAudit surface in the Florida Department of Management Services case?
CAMAudit flagged 2 findings with an apparent overcharge of $59,500. Each finding cites the specific detection rule, dollar amount, and the lease provision that grounds the dispute.
Can my firm reproduce these findings on a live client engagement?
Yes. Your firm uploads the lease and CAM bill. CAMAudit checks them against the same rule set. Your firm reviews the findings. Then your firm sends the branded report to the client.
Is Office a common property type for CAM audit engagements?
CAMAudit handles all commercial property types: retail, office, industrial, mixed-use, and specialty. The detection rules apply wherever a tenant pays CAM or operating expenses under a lease with specific definitions, caps, or exclusion lists.
What is a correction package and does CAMAudit generate one?
A correction draft is a factual starting point that specifies each overcharge by rule, dollar amount, and lease provision. CAMAudit generates a draft grounded in the specific audit findings for advisor and counsel review.
Run these same detection rules on your client engagements
Upload a client lease and CAM bill. CAMAudit applies the same rule set used in this case study. Your firm reviews the findings and sends the branded report to the client.
Book a partner walkthroughPublic-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by Florida Department of Management Services or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.