Understanding CAM Reconciliation and Expense Pass-Throughs.

CAM reconciliation season is here—ever wonder what you’re really paying for? Here’s how to decode your statement like a pro.

CAM reconciliation is one of the least understood—and most misunderstood—parts of a commercial lease. Every spring, thousands of Triangle tenants get statements showing additional amounts due. But what’s really happening behind those numbers?

1. The Purpose of CAM Reconciliation

Throughout the year, landlords collect estimated CAM payments. At year-end, they tally the actual expenses. If the landlord’s estimates were low, tenants owe the difference; if they were high, tenants may receive a credit or refund.

2. Expense Pass-Throughs

CAM isn’t the only item reconciled annually. Most Triple Net (NNN) leases also include pass-throughs for:

• Property taxes

• Insurance premiums

• Management fees

Each of these can fluctuate year to year—particularly as property values rise in hot markets like Durham and Apex.

3. How to Audit and Verify CAM

Request a CAM reconciliation statement that itemizes every expense. A credible property manager will include:

• Vendor invoices (landscaping, lighting, etc.)

• Insurance bills and property tax records

• Breakdown of square footage allocation

A tenant rep broker or accountant can review these for accuracy, ensuring you’re not being billed for capital improvements or unrelated costs.

4. Negotiating Better Transparency

When signing or renewing a lease, insist on:

• Annual CAM reconciliation timelines

• The right to audit expense records

• Exclusions for ownership costs (depreciation, leasing commissions)

Even small differences in CAM assumptions can translate into thousands of dollars per year—especially in multi-tenant office parks or retail centers.