Glossary
Calculations & Formulas
Cost Per Square Foot
CAM costs normalized to a per-square-foot figure, used to benchmark a client's bill against comparable properties in the same market. A statement wildly out of line with market cost-per-square-foot data is worth a closer look even before any specific rule violation turns up.
Firm impact
Cost per square foot gives your firm a fast, defensible way to tell a client "this number is high for the market" before you have even finished the detailed line-item review. It is a strong opening data point for a client conversation and a useful cross-check against your line-item findings.
How this gets abused
A suburban office building bills $12.50 per square foot in CAM, well above the $6 to $9 range typical for comparable buildings in the same submarket. That gap is the cue to dig into which expense categories are inflating the total, not proof of an overcharge on its own.
Practitioner note
Calculate cost per square foot early in the engagement and compare it against available market benchmarks for the property type and region. Use it to prioritize which reconciliations deserve the deepest line-item review first, not as a standalone finding.
Related terms
FAQ
Questions about cost per square foot
How is cost per square foot calculated for a CAM audit?
Divide the total CAM pool, or a specific expense category, by the building's total leasable area. Comparing that figure against similar buildings in the same market flags statements worth a closer look.
Is a high cost per square foot proof of an overcharge?
No, it's a screening signal, not a finding. A number well above market average tells your firm where to focus the detailed rule-by-rule review, not that any specific charge is wrong.
You know the term. Now check the math.
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