What documents are needed to run a CAM pre-screen from a lease abstract?

The pre-screen requires two inputs: the lease abstract with audit-ready fields populated, and the most recent annual CAM reconciliation statement. The abstract provides the expected values, such as the pro rata percentage, base year amount, management fee cap, and audit window. The reconciliation statement provides the actual values that were charged. The comparison between these two inputs is the pre-screen. The original lease is not required for the pre-screen step, though it will be needed if the review proceeds to a formal audit.

How is a CAM pre-screen different from a full CAM audit?

A pre-screen is a triage step, not a review. It checks whether the high-level parameters in the reconciliation match the lease-defined terms and whether substantive risk signals are present that warrant a deeper review. A full audit examines every line item in the reconciliation against the lease, applies all relevant detection rules, quantifies any identified overcharges, and produces documented findings with lease citations. The pre-screen takes 15 to 30 minutes per lease. The full audit takes substantially longer and requires a more detailed document set.

What should happen if the pre-screen finds a clear discrepancy but the audit window closes in 10 days?

Send a preserving dispute notice immediately. The notice does not need to quantify the overcharge precisely or identify all findings. It needs to put the landlord on notice that the tenant is disputing the reconciliation and request an extension of the review period. Many leases allow the parties to mutually agree to extend the objection period. Filing a general preserving notice while the full review is being conducted is standard practice for time-sensitive situations. Without the preserving notice, the window closes and findings become unrecoverable if the lease contains final-and-binding language.

Can a pre-screen be run on a lease where the abstract was created by a different firm?

Yes, if the abstract contains the required audit-ready fields. If the inherited abstract is missing fields like denominator description, gross-up threshold, or consequence of silence, the pre-screen will be incomplete for those checks. In that case, the pre-screen output should note which checks could not be run and recommend targeted field completion before a full review. Running a partial pre-screen is still useful because it identifies the checks that can be completed and highlights the specific gaps that need resolution.

What is the most common outcome of a CAM pre-screen?

The most common outcome is no clear structural flags, which means the reconciliation parameters match the abstract-defined terms and no specific risk signals warrant immediate escalation. This result does not mean the reconciliation is correct in every detail; a full audit may still find line-item issues. It means the highest-priority structural checks passed, and the reconciliation can be reviewed on a standard timeline or approved without a formal audit for leases with low overall trigger scores.

How to Run a CAM Pre-Screen Directly From a Lease Abstract

The CAM pre-screen is a triage step, not an audit. Its purpose is to determine quickly whether a reconciliation statement is worth sending for formal review and whether any structural parameters are clearly inconsistent with the lease terms. It uses the lease abstract as the source of expected values and the reconciliation statement as the source of actual values.

This article provides a step-by-step guide to running the pre-screen, including a worked example using an office lease with a base year structure, gross-up provisions, and a 90-day objection window.

What You Need Before Starting

Two inputs are required.

First, a lease abstract with audit-ready fields populated. The minimum required fields for a meaningful pre-screen are: pro rata share percentage, denominator description, denominator flexibility classification, base year or expense stop identifier, base year actual expense total or stop amount, gross-up provision indicator, gross-up occupancy threshold, management fee type and cap, dispute deadline (days after reconciliation delivery), and consequence of silence.

If the abstract is missing more than two of these fields, the pre-screen will be incomplete and should be preceded by a targeted field completion exercise.

Second, the most recent annual CAM reconciliation statement from the landlord. The statement should identify the tenant's pro rata percentage, the management fee, the total recoverable expense pool, and any specific expense categories being passed through.

Step 1: Confirm the Audit Window

Calculate the current deadline by adding the abstract's dispute deadline field to the reconciliation statement's delivery date. If the statement was delivered March 15 and the abstract records a 90-day objection window, the deadline is June 13.

Confirm whether the deadline is past, imminent (30 days or fewer remaining), or active.

If the deadline has passed and the abstract records final-and-binding language, note this before proceeding. The pre-screen output will document the gap, but no recovery action is possible for this year.

If the deadline is imminent, add a priority flag to the pre-screen output and recommend a formal review immediately. Any findings will need to be documented and submitted within the remaining window.

If the deadline is active and non-imminent, proceed to Step 2.

Step 2: Check the Pro Rata Percentage

Find the pro rata percentage used in the reconciliation statement. Compare it to the abstract's recorded percentage.

If they match, move to Step 3.

If they differ, check the abstract's denominator flexibility classification. If the abstract records a fixed denominator, the discrepancy is a flag requiring explanation. If the abstract records an adjustable denominator or project pooling rights, determine whether the reconciliation includes documentation of the denominator change. If no explanation is available, add a denominator discrepancy flag.

Step 3: Verify the Base Year or Expense Stop Reference

Identify the base year amount or expense stop being used in the reconciliation to calculate the tenant's escalation obligation. Compare to the abstract.

For a base year lease: does the reconciliation use the same base year calendar year as the abstract? Does the base year expense total in the reconciliation match the abstracted total or the amount you can derive from the abstract's fields?

For an expense stop lease: does the reconciliation apply the stop amount at the correct dollar-per-RSF value?

If there is a discrepancy, add a base year or expense stop accuracy flag.

Step 4: Check the Gross-Up Consistency

If the abstract records a gross-up provision, identify whether the current reconciliation used normalization and at what occupancy threshold.

Compare the occupancy threshold in the current reconciliation against the abstract's recorded threshold. If the reconciliation used 95% gross-up but the abstract records a 90% threshold, the normalization may be incorrect. Add a gross-up threshold flag.

If the current year reconciliation uses a different gross-up methodology than was used in prior years without an explanation, add a methodology consistency flag.

Step 5: Verify the Management Fee

Identify the management fee line in the reconciliation. Calculate the expected maximum by multiplying the abstract's management fee cap percentage against the appropriate expense base.

If the abstract records a management fee cap as a percentage of operating expenses, multiply that percentage by the total recoverable expense pool in the reconciliation. Compare the result against the management fee amount charged.

If the management fee exceeds the cap calculation, add a management fee cap violation flag.

If the management fee is expressed as a percentage of gross revenues or another base, adjust the calculation accordingly. If the abstract does not specify the cap basis, note the ambiguity and flag for manual verification.

Step 6: Scan for Excluded Categories

Review the reconciliation line items against the abstract's exclusion category list. Look for any line items that match excluded categories: leasing commissions, debt service interest, advertising, corporate overhead, pre-existing environmental remediation, or lease-specific exclusions noted in the abstract.

Flag any line item that appears to fall within an excluded category for detailed review in the full audit.

Step 7: Routing Decision

Based on Steps 1 through 6, determine the routing:

No flags: the structural parameters are consistent with the abstract. The reconciliation can be approved on a standard timeline or the lease can be placed in the monitor tier for annual review without immediate action.

One or two flags that can be resolved with documentation requests: route to a documentation request before approving. Request the specific supporting documents that address the flagged items.

Multiple flags or flags that require detailed calculation: route to formal CAM review. If the deadline is active, begin the review immediately. If the deadline is imminent, consider a preserving dispute notice while the review is in progress.

Worked Example: Office Lease with Base Year, Gross-Up, and 90-Day Window

The abstract contains these relevant fields:

Lease structure: NNN with base year. Base year: 2022. Base year expense total: $10.80 per RSF (grossed up). Gross-up provision: present. Occupancy threshold: 95%. Gross-up cost categories: all variable expenses. Pro rata percentage: 8.4%. Denominator: building RSF, fixed. Management fee cap: 4% of operating expenses. Dispute deadline: 90 days after reconciliation delivery. Consequence of silence: final and binding.

The 2024 reconciliation statement arrives on March 8, 2025. The statement shows:

Pro rata percentage: 8.4%. Management fee: $47,200. Total recoverable expenses: $1,140,000. Reconciliation delivery date: March 8. Tenant's allocated share: 8.4% of $1,140,000 = $95,760. Escalation above base year: claimed base year total = $107,856 (8.4% of $10.80 × 120,000 RSF).

Step 1: Deadline calculation. March 8 plus 90 days = June 6. Active window, 89 days remaining. No urgency flag.

Step 2: Pro rata check. Reconciliation states 8.4%. Abstract records 8.4%. Match. No flag.

Step 3: Base year verification. The abstract records the base year as 2022 with a grossed-up total of $10.80 per RSF. The reconciliation's base year total per RSF calculation should be verified against the building's total RSF. If the building has 120,000 RSF, the expected base year total in dollars is $1,296,000. The reconciliation needs to show that the escalation is calculated against this amount. Flag for verification if the reconciliation does not show the base year total in absolute dollar terms.

Step 4: Gross-up consistency. The abstract records a 95% gross-up threshold for all variable expenses. Confirm whether the reconciliation discloses the current year occupancy and whether the prior year's reconciliation also used 95%. If the current statement does not disclose occupancy or the methodology, add a gross-up documentation request flag.

Step 5: Management fee check. Cap = 4% of operating expenses. Total recoverable expenses per statement = $1,140,000. Maximum permitted management fee = $45,600. Reconciliation management fee = $47,200. Difference = $1,600 over the cap. Add a management fee cap flag.

Step 6: Exclusion scan. Scan reconciliation line items against abstracted exclusions. Assume no excluded categories appear in this example.

Routing decision: the management fee exceeds the cap by approximately $1,600. Combined with a gross-up documentation request, this reconciliation warrants a formal review before the June 6 deadline. Route to audit. The 89-day window provides adequate time for a full review, but the management fee finding should be documented as a preliminary finding to preserve the review record.

This example is representative of the type of pre-screen output that converts a routine reconciliation review into an actionable advisory step. The pre-screen took less than 30 minutes. The management fee flag alone may produce a finding worth disputing.

Firms using this pre-screen process can deliver a branded audit readiness report as a standalone client deliverable before the full review runs.

How to Run a CAM Pre-Screen Directly From a Lease Abstract