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Ground Lease CAM Reconciliation Guide for Landlords

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

Benchmark CAM per SF

$0.50 – $3.00 / SF

Source: Varies widely by location and infrastructure

Gross-Up Applicability

Limited — ground leases typically have few shared variable expenses. When multiple ground tenants share infrastructure (roads, drainage, utilities), those costs may be subject to gross-up if parcels are undeveloped.

Typical CAM Pools

  • Property taxes (land only)
  • Insurance (land/infrastructure)
  • Common area maintenance (roads, utilities, drainage)
  • Landscaping
  • Security (perimeter)
  • Management fees

Standard Exclusions

  • Building-level expenses (tenant's responsibility)
  • Capital improvements to tenant-owned buildings
  • Tenant's insurance
  • Building maintenance

Common Lease Structures

Absolute NNN ground leaseGround lease with CAM overlay for shared infrastructureGround lease with percentage rent

Common Billing Errors

  • Charging ground tenants for improvements to landlord-retained parcels
  • Including building-level property taxes in ground lease CAM (should be tenant's direct obligation)
  • Misallocating shared infrastructure costs when new parcels are developed

Relevant BOMA Standards

  • No specific BOMA ground lease standard — land area measured by survey

Ground Lease CAM Context

Ground leases separate land ownership from building ownership, creating a unique CAM dynamic. The ground landlord is responsible for shared infrastructure (roads, utilities, drainage) while tenants own and maintain their buildings. CAM disputes center on infrastructure cost allocation and property tax assessment splits.

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Related Resources

Expenses/Administrative OverheadBoma/Boma 2024 Adoption RoadmapCam Reconciliation ErrorsCam Gross Up CalculatorPro Rata Calculator

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