The percentage of total CAM costs allocated to a specific tenant based on the ratio of their leased square footage to the total leasable area of the building or property. A pro-rata share error is one of the most common CAM overcharges.
Pro-rata share = tenant's rentable square footage ÷ total rentable square footage of the property (the denominator as defined in the lease). The lease defines whether the denominator is gross leasable area (GLA), occupied area, or a fixed number. Using a smaller denominator inflates every tenant's share.
A 100,000 SF shopping center has a tenant occupying 5,000 SF. The lease calls for a denominator of total GLA, giving a 5% pro-rata share. The landlord uses occupied space (80,000 SF) as the denominator - raising the share to 6.25%. On $500,000 of CAM, this error alone costs the tenant $6,250/year.
Verify your denominator every year. Request the landlord's occupancy report and compare the denominator on your reconciliation against your lease's definition and the property's actual GLA. You can extract the exact denominator language from your lease PDF using lextract.io before running the comparison.
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A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.
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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.
