Q3 Budget Season: Setting Next Year's CAM Estimates
CAM estimates set in Q3 determine whether tenants owe or are owed at next year's reconciliation. Accuracy here reduces disputes later.
Q3 budget season (July through September) is when commercial landlords set CAM estimates for the following year. These estimates determine monthly tenant payments for 12 months — and the difference between estimates and actuals becomes the year-end settlement. Setting estimates too low creates large underpayment settlements; too high creates overpayments and tenant frustration. The goal is accuracy, not optimism.
Key Dates (5)
| Date / Timeframe | What Happens |
|---|---|
| July–August | Review current year actuals through June, identify trends |
| August–September | Build next year's expense budget by category |
| September 30 | Finalize estimates for properties with October 1 estimate anniversaries |
| October–November | Issue estimate letters for calendar-year properties (January 1 effective date) |
| December 1 | Deadline for issuing most calendar-year CAM estimate letters |
Phase Checklist (8 items)
Common Mistakes
Where CapVeri Fits
CapVeri's CAM Estimate Forecaster uses current year actuals as a base, applies growth assumptions by expense category, and projects next year's estimate by tenant. This eliminates the spreadsheet work of building estimates manually and flags any estimates that would produce unusually large settlements based on current trajectory.
Related Resources
Free Tools for This Phase
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