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Manufacturing Facility CAM Reconciliation Guide for Landlords

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

Benchmark CAM per SF

$1.00 – $3.50 / SF

Source: NAIOP / IREM 2024

Gross-Up Applicability

Rarely applicable — most manufacturing facilities are single-tenant. In multi-tenant flex/manufacturing parks, gross-up may apply to shared infrastructure costs.

Typical CAM Pools

  • Parking maintenance
  • Security
  • Insurance
  • Property taxes
  • Fire/life safety systems
  • Environmental compliance (shared)
  • Management fees

Standard Exclusions

  • Tenant process equipment
  • Environmental remediation (tenant-caused)
  • Capital improvements
  • Specialized utility infrastructure

Common Lease Structures

NNN (single-tenant dominant)Absolute NNN with tenant responsible for all maintenance

Common Billing Errors

  • Misallocating environmental compliance costs to tenants not generating the contamination
  • Including specialized utility infrastructure as common area costs
  • Charging manufacturing tenants for office-standard common area maintenance

Relevant BOMA Standards

  • ANSI/BOMA Z65.2-2012 (Industrial Buildings)

Manufacturing Facility CAM Context

Manufacturing facility CAM is typically minimal because most leases are absolute NNN with the tenant responsible for virtually all operating costs. Disputes center on environmental liability allocation and shared utility infrastructure.

Industry Benchmarks

Avg Occupancy (2025)
96.2%
Public REIT average
Median OpEx/SF
$1.54
Annual operating expenses
Typical Recovery Ratio
95-100%
Nearly all industrial leases are absolute NNN; tenants pay v...

Source: Public REIT 10-K filings (FY 2025), BOMA EER (2025 edition). Data compiled March 2026.

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Related Resources

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

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