Public record
Clarendon Center: capital project pass-through case study
A public-record mixed-use lease case study showing $42,875 in apparent overcharges from lobby renovation soft costs and landlord overhead.
What happened
A retail tenant at Saul Holdings' Clarendon Center received a 2022 reconciliation that pushed capital-project soft costs into CAM. The lease excludes capital work, related design and permit fees, and financing costs, yet the statement still passed through lobby renovation architecture fees, permit expenses, a financing reserve, and two separate overhead allocations including an off-site asset management fee.
Findings from the pipeline
Rule 13
Landlord Overhead Pass-Through
$8,686
'Executive Salary Allocation - Regional VP Operations' is classified as landlord overhead, corporate costs such as executive salaries, off-site accounting, and corporate insurance are generally not recoverable from tenants. [scaled to tenant share: 5.9900%]
Statement references
- Executive Salary Allocation - Regional VP Operations
Rule 13
Landlord Overhead Pass-Through
$2,396
'Off-Site Asset Management Fee' is classified as landlord overhead, corporate costs such as executive salaries, off-site accounting, and corporate insurance are generally not recoverable from tenants. [scaled to tenant share: 5.9900%]
Statement references
- Off-Site Asset Management Fee
Rule 2
Excluded Service Charges
$17,072
'Lobby Renovation - Architectural & Design Fees (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 5.9900%]
Lease evidence
Operating Expenses shall exclude the following cost pools: capital.
EXCLUSIONS FROM OPERATING EXPENSES
Statement references
- Lobby Renovation - Architectural & Design Fees (CapEx)
Rule 2
Excluded Service Charges
$2,905
'Construction Permit & Inspection Fees (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 5.9900%]
Lease evidence
Operating Expenses shall exclude the following cost pools: capital.
EXCLUSIONS FROM OPERATING EXPENSES
Statement references
- Construction Permit & Inspection Fees (CapEx)
Rule 2
Excluded Service Charges
$7,488
'Renovation Financing Interest Reserve (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 5.9900%]
Lease evidence
Operating Expenses shall exclude the following cost pools: capital.
EXCLUSIONS FROM OPERATING EXPENSES
Statement references
- Renovation Financing Interest Reserve (CapEx)
Lease evidence
- Operating Expenses exclude capital expense pools.
- Architectural, engineering, and permit fees tied to capital work are excluded.
- Financing costs and interest reserves related to capital projects are excluded.
- Tenant pro-rata share used in the statement was 5.99%.
Why this matters for your firm
Capital projects rarely appear in CAM as one obvious roof-replacement line. More often they show up as soft costs around the project: design fees, permit costs, and financing reserves. If the lease excludes capital work, those related categories usually fall with it. That is where a lot of expensive pass-throughs hide.
Dispute letter draft excerpt
Request for Review - 2022 CAM Reconciliation Statement at Clarendon Center. The review flagged about $42,875 in lobby renovation soft costs and landlord overhead allocations.
Capital expenditures in CAM charges
Industry guideRetail CAM overcharges guide
Detection guideExcluded service charge guide
Frequently asked questions
What findings did CAMAudit surface in the Retail tenant at Clarendon Center case?
CAMAudit flagged 5 findings with an apparent overcharge of $38,546. 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 Mixed-use retail and 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 dispute letter draft and does CAMAudit generate one?
A dispute letter 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.
Next engagement
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.
Public-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by Retail tenant at Clarendon Center or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.