Full Service Gross Lease (FSG) tenants face specific billing risks tied to how expenses are allocated and reconciled. The most common error appears in the section below. CAMAudit runs 14 forensic detection rules on your reconciliation statement to identify every recoverable dollar.
Improper gross-up of fixed expenses. Gross-up provisions are designed to adjust variable expenses (utilities, janitorial) to reflect 95% occupancy. Fixed expenses like property taxes and insurance do not vary with occupancy, grossing them up inflates the base year stop downward and the tenant's escalation exposure upward. This is one of the most technically complex and financially significant overcharge categories.
A lease structure where the tenant pays a single flat monthly rent that includes all operating expenses, property taxes, insurance, utilities, maintenance, janitorial, and management, for the base year. The landlord absorbs all operating costs up to the base year expense stop. In subsequent years, tenants typically pay their pro-rata share of expense increases above the base year stop.
Base year: landlord covers all operating expenses. Years 2+: tenant pays pro-rata share of expense increases above the base year stop (also called expense escalations or operating expense contributions). Common inclusions in escalations: management fees, janitorial, utilities, maintenance, and insurance.
No monthly CAM estimate. At year-end, landlord calculates actual total operating expenses for the year, compares to the base year stop (typically grossed up to 95% occupancy), and bills each tenant their pro-rata share of the excess. Tenants in multi-story office buildings often see escalation bills ranging from $1–$8/SF depending on market conditions and building age.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
Verify that only variable expenses are grossed up (utilities, janitorial, trash removal). Confirm fixed expenses (taxes, insurance, management fee base) are NOT included in the gross-up calculation. Audit the base year expense total against actual invoices. Check that after-hours HVAC is billed at cost, not at an inflated rate.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
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Find My OverchargesNeed to extract lease terms before your audit?
A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.
Go to lextract.ioThis 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.
