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Math-Based Rule

Pro-Rata Share Error: How CAMAudit Detects This Overcharge

Even a 1% error in your pro-rata share fraction compounds across every line item in your CAM statement. On a $100,000 total CAM bill, that's $1,000 in overcharges every year from a single number.

Definition

Pro-Rata Share Error

A pro-rata share error is a miscalculation in the fraction used to allocate common area expenses to a tenant. The pro-rata share is typically the tenant's rentable square footage divided by the total rentable square footage of the building or applicable CAM pool. Errors arise from using the wrong denominator (e.g., excluding vacant space from the pool), incorrect numerator (wrong square footage for the tenant's space), or misapplication of custom allocation provisions in the lease.

Key Takeaway

The pro-rata share fraction is the multiplier applied to every line item in your CAM statement. Errors in this single number inflate your entire bill proportionally.

How CAMAudit Detects This

CAMAudit extracts your pro-rata share percentage and its components from your lease: your leased square footage (numerator) and the applicable building or project square footage (denominator). It also extracts whether the lease uses a fixed percentage, a recalculated annual percentage, or a custom allocation formula.

The tool then compares the pro-rata share used in your reconciliation against the figure computed from the lease definition. If the landlord applied a different percentage, CAMAudit flags the discrepancy and calculates the overcharge by multiplying the variance by the total CAM pool.

CAMAudit also checks whether the denominator definition matches common manipulation patterns: landlords sometimes exclude vacant space from the denominator, shrinking it and inflating each remaining tenant's share. Your lease should specify whether the denominator is fixed or adjusts for occupancy.

Real-World Example

A tenant leased 4,800 sq ft in a 60,000 sq ft building. Their lease specified a fixed pro-rata share of 8.0% (4,800 / 60,000). The reconciliation applied 10.2%, noting the building had 47,100 sq ft of occupied space. The landlord was excluding vacant units from the denominator. CAMAudit flagged the variance: on a $185,000 CAM pool, the tenant was billed $18,870 instead of the correct $14,800, a $4,070 overcharge for that year alone.

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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or ‘binding and conclusive’ provisions, and on applicable state law. State statute of limitations periods apply to written contracts and range from 3 to 10 years; your actual lookback window may be shorter based on your lease. CAMAudit is a document analysis platform, not a law firm, and nothing on this site constitutes legal advice. Consult a licensed real estate attorney before initiating any dispute or legal proceeding.

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