The contractually specified duration of a commercial lease, running from the commencement date to the expiration date. The lease term determines the period during which the tenant owes rent, CAM charges, and other obligations under the lease.
The lease term typically begins on the rent commencement date (which may follow a build-out or free-rent period after the legal commencement date) and ends on the stated expiration date. Renewal options, holdover provisions, and early termination rights can extend or shorten the effective occupancy period. CAM obligations typically run for the full lease term, including any renewal periods exercised by the tenant. For CAM audit purposes, the lease term determines how many reconciliation years the tenant can audit and how far back the lookback period applies under audit rights provisions.
A tenant signed a 10-year lease without auditing their CAM charges. By year 7, the landlord had accumulated overcharges exceeding $90,000 — but the audit rights clause limited the lookback to 2 years, and the binding-and-conclusive clause extinguished claims for earlier years. Most of the recoverable overcharges were beyond reach simply because the tenant never exercised their rights during the lease term.
Do not wait until your lease term nears expiration to audit CAM charges. Most leases limit the audit lookback to 1–3 years of prior reconciliation statements, and binding-and-conclusive clauses can permanently extinguish claims you delay. Audit annually or at minimum every 2 years during the lease term.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
