Property taxes assessed by local governments on commercial real estate, typically passed through to tenants in NNN leases and as expense escalations in gross leases. Tax reconciliation errors are common CAM overcharges.
Property taxes are generally uncontrollable (excluded from CAM caps) and passed through at actual cost. Common overcharges include: billing taxes on parcels not related to the tenant's building; double-billing during tax year transitions; and failing to pass through tax appeal savings.
A landlord included taxes from a vacant adjacent parcel in the office building's operating expense pool. Tenants were allocated $95,000 in taxes for land they had no access to or benefit from.
Request the actual tax bill and tax parcel number(s) for your property. Confirm that only taxes for your specific building or campus are included. Property managers automating tax pass-through calculations can use CapVeri.com.
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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.
