Medical Office Lease 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.
Standard office or retail tenants subsidizing medical tenants' specialized expenses. When bio-hazardous waste removal, high-amperage electrical infrastructure, or specialized plumbing maintenance for a surgical center is billed through the general CAM pool, every tenant in the building pays for those specialized costs, not just the medical tenant that generated them.
A specialized commercial lease for medical, dental, and healthcare outpatient facilities. Typically structured as either NNN or Full Service Gross with significant additional provisions for: heavy utility usage (plumbing, power for medical equipment), bio-hazardous waste disposal, ADA compliance for patient access, specialized janitorial requirements, and after-hours HVAC for patient care hours that extend beyond standard business hours.
Varies by structure (NNN or FSG), but medical leases add unique pass-through categories: specialized janitorial for infection control, bio-hazardous waste removal for heavy-use tenants, above-code plumbing maintenance, high-power electrical circuits for imaging equipment, and extended HVAC hours. The risk of cross-subsidy, standard office tenants paying for heavy medical users' specialized expenses, is significant.
Standard NNN or FSG CAM mechanics apply, but the reconciliation must segregate medical-specific expenses from standard office/retail expenses. Utility submetering is critical because medical tenants consume dramatically more electricity and water than standard office tenants. Without submetering, a single MRI suite can inflate the entire building's utility pass-through.
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Demand utility submetering to isolate each tenant's actual consumption. Review janitorial invoices to identify medical-specific cleaning services (operating room-grade disinfection) and ensure those costs are not pooled into the general CAM. Audit bio-hazardous waste disposal invoices to confirm only the generating tenant bears those costs. Verify ADA compliance capital costs are excluded from CAM.
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