What is CAM Reconciliation?
The annual process of comparing estimated CAM charges collected from tenants against actual operating expenses incurred, resulting in a credit or balance due.
Definition
CAM reconciliation is the annual process by which a landlord compares estimated Common Area Maintenance charges collected from tenants during the year against actual operating expenses incurred. Tenants receive a reconciliation statement showing the variance — either a credit or a balance due — based on their pro-rata share of actual costs. Accurate reconciliation requires matching GL-level expense data against lease-specific billing rules including caps, exclusions, and gross-up provisions. Errors in this process are the leading cause of tenant disputes and audit findings in commercial real estate.
Property managers spend 40+ hours per property on manual reconciliation.
Automate CAM ReconciliationRelated Terms
Related Resources
Need lease data before you reconcile?
lextract.io abstracts commercial leases into 126 structured fields in minutes — CAM definitions, pro-rata share, caps, base year, and more. No manual data entry.
Go to lextract.io