Flex Industrial CAM Reconciliation Guide for Landlords

Typical CAM pools, billing errors, gross-up mechanics, and BOMA standards for flex industrial properties.

Benchmark CAM per SF

$2.50 – $6.50 / SF

Source: NAIOP / IREM 2024

Gross-Up Applicability

Moderately relevant — flex buildings often have varying occupancy across units. Variable expenses for shared parking, landscaping, and common-area HVAC should be grossed up when below standard occupancy.

Typical CAM Pools

  • Parking lot maintenance
  • Landscaping
  • Security
  • Common area utilities
  • HVAC (office portion)
  • Insurance
  • Property taxes
  • Management fees
  • Trash removal

Standard Exclusions

  • Capital improvements
  • Leasing commissions
  • Tenant-specific equipment
  • Warehouse-only utility costs

Common Lease Structures

NNNModified grossIndustrial gross

Common Billing Errors

  • Averaging HVAC costs across warehouse and office tenants despite vastly different usage
  • Inconsistent allocation between flex suites of different sizes
  • Including dock-area costs in CAM for tenants with no dock access

Relevant BOMA Standards

  • ANSI/BOMA Z65.2-2012 (Industrial Buildings)
  • Mixed office/warehouse measurement

Flex Industrial CAM Context

Flex industrial creates unique CAM challenges because tenants range from office-heavy (70/30 office-to-warehouse) to warehouse-heavy (10/90). Allocating HVAC, janitorial, and utility costs fairly across these different configurations is the primary dispute driver.

Validate Your Flex Industrial Reconciliations

CapVeri applies property-type-specific rules to catch gross-up errors, cap violations, and billing mistakes — from your Yardi or MRI exports.

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