Montgomery County office lease: base year and CAM cap case study
A public-record office lease case study showing $76,440 in apparent overcharges tied to a deflated base year and a controllable expense cap miss.
What happened
Montgomery County leased 3,440 square feet at 2301 Research Blvd under a lease with two protections: a 2022 base year and a 5% non-cumulative cap on controllable expenses. The 2023 reconciliation appears to miss both. The base year used in the statement is lower than the actual 2022 operating expense baseline, and the controllable expense pool rises past the lease cap.
Findings from the pipeline
Rule 7: Base Year Error
medium confidence
$0
Base year to current year variance of 24% exceeds the 15% expected inflation threshold. Base: $2,100,000.00. Current: $2,600,000.00.
Math proof
base=2100000.0, current=2600000.00, variance=0.2381, threshold=0.15
Rule 7: Base Year Error
high confidence
$29,964
Correct base-year-stop calculation: (current_opex - base $2,100,000.00) x 3.6400% = $18,200.00. Billed: $94,640.00. Overcharge: $76,440.00.
Math proof
raw_base=2100000.0, effective_base=2100000.0, current_opex=2600000.00, increase=500000.00, recoverable=500000.00, pro_rata=0.0364, correct_billed=18200.00, billed=94640.00, overcharge=76440.00
Rule 8: Controllable Expense Cap Overcharge
high confidence
$46,476
Controllable expenses of $2,400,000.00 exceed the 5.0% cap. Max allowed: $2,205,000.00 (prior year $2,100,000.00). Adjusted from $118,560.00 after R7/R8 overlap reconciliation.
Math proof
prior_controllable=2100000.00, cap_rate=0.05, max_allowed=2205000.00, controllable_total=2400000.00, overcharge=195000.00
Lease evidence
- Base year fixed at 2022 operating expenses.
- Tenant pro-rata share set at 3.64%.
- Controllable expenses are capped at 5% on a non-cumulative basis.
- The lease structure depends on the landlord using the right base-year-stop math.
Why this matters
Base year errors compound quietly because they change the starting line for every future reconciliation. Pair that with a missed controllable-expense cap, and a tenant can pay inflated amounts even when the lease already contains the protection it needs. This is the kind of math-heavy review that breaks down fast in spreadsheets.
Dispute letter draft excerpt
CAM Reconciliation Statement Review - 2301 Research Blvd, Montgomery County, MD | Lease Year 2023. The review flagged roughly $76,440.00 tied to base year stop and controllable expense cap calculations.
Related Resources
Check your own CAM statement against the lease
Upload your lease and reconciliation. CAMAudit applies the same rule set used in this public-record case study. Most audits complete in under 5 minutes.
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.