Can my landlord exclude anchor tenant space from the CAM denominator?

Only if your lease explicitly permits it. Anchor exclusions directly increase your pro-rata share. Request the current building GLA certificate and verify it includes all built square footage. CamAudit's pro-rata share detection rule flags denominator discrepancies automatically.

What is a natural breakpoint and why does it matter for percentage rent?

The natural breakpoint is base rent divided by the percentage rate. If base rent is $60,000 and the rate is 6%, the natural breakpoint is $1,000,000, you owe percentage rent only on sales above that figure. Landlords sometimes use an artificial breakpoint set lower than the natural one, triggering percentage rent prematurely.

How do I know if my management fee is within the lease limit?

Your lease specifies the permitted management fee percentage and the base on which it is calculated (e.g., 3% of gross receipts, or 5% of controllable CAM). Request the landlord's CAM general ledger showing how the fee was computed. CamAudit extracts the lease cap and flags any fee that exceeds it.

Can my landlord exclude anchor tenant space from the CAM denominator?

Only if your lease explicitly permits it. Anchor exclusions directly increase your pro-rata share. Request the current building GLA certificate and verify it includes all built square footage. CamAudit's pro-rata share detection rule flags denominator discrepancies automatically.

What is a natural breakpoint and why does it matter for percentage rent?

The natural breakpoint is base rent divided by the percentage rate. If base rent is $60,000 and the rate is 6%, the natural breakpoint is $1,000,000, you owe percentage rent only on sales above that figure. Landlords sometimes use an artificial breakpoint set lower than the natural one, triggering percentage rent prematurely.

How do I know if my management fee is within the lease limit?

Your lease specifies the permitted management fee percentage and the base on which it is calculated (e.g., 3% of gross receipts, or 5% of controllable CAM). Request the landlord's CAM general ledger showing how the fee was computed. CamAudit extracts the lease cap and flags any fee that exceeds it.

CAM Audit for Retail Stores

Inline and big-box retail tenants operating in shopping centers, strip malls, and power centers. Includes national chains and independent retailers paying NNN or percentage rent on high-traffic, high-visibility locations. Annual CAM exposure for this tenant type ranges up to $15,000–$150,000+. CamAudit runs 12 forensic detection rules specific to your lease structure in under five minutes.

Typical Lease Structure

Triple Net (NNN) or Percentage Rent

Avg. Locations

1–500+

Annual CAM Exposure

$15,000–$150,000+

Lease Structure

Triple Net (NNN) or Percentage Rent, tenant pays base rent plus property taxes, insurance, and CAM on a pro-rata basis. Annual reconciliation is standard; percentage rent applies when gross sales exceed a natural breakpoint.

CAM Vulnerabilities for Retail Stores

Anchor tenant exclusions from the pro-rata denominator inflate the small tenant's share. Management fees are frequently charged on the full CAM pool including non-controllable expenses. Capital improvements such as parking lot repaving or roof replacement are buried in recurring CAM line items.

Most Common Overcharges

1Management fee charged on gross CAM pool including excluded expenses
2Anchor tenant square footage excluded from pro-rata denominator
3Parking lot mill-and-pave billed as routine maintenance in Year 1
4Capital expenditure reserves included in operating CAM pool
5Marketing fund dues charged without corresponding lease authority

Watch For This Trigger

Year-end reconciliation statement shows a CAM spike exceeding 10% with no corresponding change in services or occupancy.

Detect Overcharges in Your Retail Store Lease

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Precedent & Case Context

Simon Property Group tenants have successfully challenged percentage rent calculations that included online returns processed in-store, recovering thousands in overstated gross sales figures.

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Other Tenant Types

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Related Resources

ResourcesLease Types and CAM Structures ToolsFree CAM Audit Tools ToolsPro-Rata Share Calculator GlossaryCAM Glossary

Frequently asked questions

This 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.