Fixed CAM vs Traditional Reconciliation Modeler

Compare what you would recover under traditional CAM reconciliation vs a Fixed CAM structure (flat $/SF + annual escalator) over 3-5 years.

Fixed CAM charges tenants a flat per-SF rate that escalates annually (typically 3–5%), replacing the traditional reconciliation process. While Fixed CAM eliminates year-end true-ups and reduces administrative burden, it can leave significant recovery on the table when actual expenses outpace the escalator.

Why this matters

Fixed CAM structures are gaining popularity because they eliminate reconciliation complexity. But they often leave money on the table when expenses grow faster than the fixed escalator. This modeler shows the real economic impact so you can make an informed decision.

Modeling Period

Historical Data (Per Year)

Year 2022

Year 2023

Year 2024

Year 2025

Year 2026

Fixed CAM Terms

$
3.0%
0%10%

Year-by-Year Comparison

Enter historical data and Fixed CAM terms to see a year-by-year comparison.

Summary & Recommendation

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Total Traditional Recovery

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Total Fixed CAM Revenue

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Cumulative Delta Over Period

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Average Annual Difference

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Frequently Asked Questions

What is Fixed CAM?
Fixed CAM (also called ‘flat CAM’ or ‘CAM cap with no reconciliation’) charges tenants a predetermined per-square-foot rate that increases by a fixed percentage annually. Unlike traditional CAM reconciliation, there is no year-end true-up — the tenant pays the same amount regardless of actual expenses.
Is Fixed CAM better for landlords or tenants?
Fixed CAM benefits tenants by providing expense predictability and eliminating year-end surprise bills. Landlords benefit from reduced administrative burden but accept the risk that actual expenses may exceed the fixed charge — especially in high-inflation years or when operating costs spike unexpectedly.
When does traditional CAM reconciliation recover more than Fixed CAM?
Traditional reconciliation recovers more whenever actual operating expenses grow faster than the fixed escalator rate. For example, if Fixed CAM escalates at 3% annually but actual expenses grow 5–7%, the landlord loses the difference each year — and the gap compounds over the lease term.
Can I convert from Fixed CAM to traditional reconciliation?
Conversion typically happens at lease renewal or amendment. Some landlords include a ‘look-back’ clause that allows switching to traditional reconciliation if actual expenses exceed the fixed charge by more than a defined threshold (often 10–15%).

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