Repairs to the building's load-bearing structural elements including foundation, exterior walls, roof structure, and building envelope.
| Lease Type | Recoverable? | Controllable? |
|---|---|---|
| NNN | No | No |
| Modified Gross | No | No |
| Full-Service Gross | No | No |
CapEx Risk: This line item is commonly used to disguise capital expenditures as operating expenses. Verify all invoices against GAAP standards.
Approximate budget share: 0-2% of total CAM pool.
Landlords attempt to pass foundation repairs, structural wall repointing, and building envelope restoration through the CAM pool, particularly in NNN leases with ambiguous structural exclusion language.
This line item is commonly used to disguise capital expenditures as operating expenses. Capital expenditures must be excluded from CAM or amortized over their useful life per GAAP. If you see unusually high or one-time charges in this category, request all invoices and scope-of-work documentation before paying.
Structural repairs are the landlord's capital obligation in virtually all lease structures. Even in NNN leases, the landlord retains responsibility for the structural shell. Challenge any structural repair charge as beyond the scope of recoverable CAM. Request engineering reports and scope-of-work documents to confirm the structural nature of the work.
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Start Free AuditThis 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.