100 Ft Commercial
100 Ft Commercial
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How do you apportion CAM among commercial property tenants?
Building has four tenants each with varying occupied SQ FT.
If Tenant A occupies 29% of total sq. ft. of the building
& Tenant B occupies 34% of total sq ft of the building
& Tenant C occupies 17% of total sq ft of the building
& Tenant D occupies 20% of total sq ft of the building
Do I use 100% of the CAM and the total sq ft of each tenant to apportion the CAM?
I am confused because the services of the woman who did this for us last year was terminated. When I checked her figures from last year, she did not use 100% of the expenses. Since only the four tenants are in the building and the bldg is 100% occupied I was wondering if she was applying a commonly used formula (if one exists). Perhaps something that is common and known within the leasing industry. Or does the landlord take a percentage of CAM even though he has no use of space at all.
Building is in Nevada.
Thanks for reading and appreciate any answers in response!
You are going to have to check each tenant's individual lease. Some might specify a square footage that they are paying CAM on that is different from their occupied square footage, or have a cap on CAM, or be exempt from it entirely.