The percentage of a property's rentable space that is unoccupied at any given time. In CAM allocation, how vacancy is handled - whether vacant space bears its own share or costs are redistributed to occupied tenants - has significant financial impact.
When the pro-rata share denominator is total GLA (including vacant space), vacancy has no impact on occupied tenants' shares. When the denominator is occupied GLA only, vacancy redistributes costs to paying tenants - effectively making them subsidize empty space.
A 200,000 SF property was 60% occupied. The landlord used an occupied-only denominator (120,000 SF) instead of total GLA. Each tenant's pro-rata share increased by 67%.
Confirm your lease specifies total GLA (not occupied GLA) as the denominator. If the denominator shifts during the year, request the occupancy report for each month and calculate the weighted average.
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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.
