How does CAMAudit detect overcharges?

CAMAudit runs 14 deterministic detection rules on your uploaded lease and CAM reconciliation statement. Each rule checks a specific billing mechanism: fee calculations, pro-rata share formulas, gross-up provisions, caps, and expense classifications. Rules are triggered only when your documents contain the relevant terms.

What documents do I need to upload?

You need your commercial lease (including all addenda) and your CAM reconciliation statement from your landlord. Both are required. Upload the most recent reconciliation statement first; you can add prior years afterward to check for multi-year overcharges.

How much does a CAMAudit scan cost?

The free scan runs the full pipeline at no cost and shows your total potential recovery. Unlock the full report with line-item findings and a dispute letter draft for a flat fee. No contingency fees. You keep 100% of any recovery.

How long does it take to get results?

The full audit pipeline runs in under 15 minutes for most documents.

My Franchise Occupancy Costs Jumped 25%: Is This Normal?

A 25% jump in occupancy costs in a single year is not normal. It is worth investigating.

This question comes up regularly among franchisees on r/franchise and in multi-unit operator groups. Your base rent escalates predictably. CAM charges are supposed to track actual operating costs. A 25% spike in total occupancy cost almost always means something changed in the CAM portion, and that change may or may not be legitimate.

Here's how to think through it.

What "normal" CAM escalation looks like

Annual CAM cost increases of 3% to 5% are typical in most commercial markets. That tracks roughly with inflation and normal operating cost escalation: maintenance contracts, insurance premiums, property tax adjustments.

Some years run higher. A significant insurance market spike or a property tax reassessment can push CAM up 8% to 12% in a single year. That is unusual but explainable.

A 25% increase is a different category. At that level, something specific changed, and your landlord should be able to tell you exactly what.

Common causes of large single-year CAM increases

Capital expenditures misclassified as operating expenses. This is the most common driver of outsized CAM spikes. Your landlord repaved the parking lot, replaced the HVAC system, or re-roofed part of the building. These are capital improvements. Under most NNN leases, capital expenditures either should be excluded from CAM entirely or amortized over their useful life, not billed as a lump sum in one year.

If your reconciliation year includes a line item for parking lot resurfacing, roof work, major equipment replacement, or any other capital project, that is worth examining closely against your lease's CAM exclusions.

Occupancy rate drop in the center. Many NNN leases calculate your pro-rata share as your square footage divided by the total occupied (or leasable) square footage of the property. If a large anchor tenant vacated during the year, your denominator got smaller, which inflated every remaining tenant's pro-rata share. Your costs did not go up. Your share percentage did.

Check whether the occupancy rate in your center changed. If an anchor tenant left, that mechanically increases your allocated share of shared costs.

Management fee base change. Some leases cap the management fee at a percentage of gross revenues or gross operating expenses. If the landlord changed how they calculate the management fee base, that can produce a significant jump. Compare the management fee line year over year and check what percentage it represents of total gross CAM expenses.

New assessments or special charges. Municipalities sometimes levy special assessments for infrastructure improvements near commercial properties. Depending on your lease, these may or may not be includable in CAM. Check for any new line items that did not appear in prior years.

What to request from your landlord

In writing, request the following for the reconciliation year in question:

Full expense ledger showing all line items billed to CAM
Prior year comparison (if not already provided)
Occupancy schedule showing the denominator used for your pro-rata share calculation
Documentation for any capital expenditure line items (and the amortization schedule if applicable)
Management fee calculation detail

Most NNN leases give you this right explicitly through an audit clause. Reference that clause in your request and send it before your audit window closes. Typical audit windows run 60 to 180 days from the reconciliation delivery date.

Comparing against other franchisees in the same center

If you know other tenants in your center, particularly those on similar NNN lease structures, comparing CAM statements can be informative. A 25% increase that affects only your space but not neighboring tenants in the same building points toward a pro-rata share calculation error, a lease-specific exclusion issue, or a line item that was incorrectly allocated.

If the same 25% increase hit every tenant in the center, the cause is more likely a legitimate but sharp cost increase or a capital project. Still worth reviewing, but the pattern is different.

What to do next

Pull your lease and find the CAM definition, the exclusions clause, the pro-rata share calculation method, and the audit rights clause. Those four sections will tell you what you are actually entitled to challenge.

Then request the expense detail and compare it against those lease terms.

If that analysis is outside your bandwidth, run a free CAM scan at CAMAudit. Upload your lease and reconciliation statement and our tool identifies specific categories of potential overcharges tied to your actual lease terms. Multi-location franchisees find this particularly useful because the same lease structure applies across locations, so a finding pattern often repeats.

A 25% occupancy cost increase deserves an explanation. If your landlord cannot provide one with documentation, you have a dispute worth pursuing.

My Franchise Occupancy Costs Jumped 25%: Is This Normal?