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Strip Mall CAM Reconciliation Guide for Landlords

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

Benchmark CAM per SF

$2.50– $6.00 / SF

Source: ICSC / IREM 2024

Gross-Up Applicability

Limited. Strip malls have lower total CAM and fewer variable expenses. However, when a strip mall has high vacancy, remaining tenants may dispute paying for the entire parking lot and lighting.

Typical CAM Pools

  • Parking lot maintenance
  • Landscaping (basic)
  • Lighting
  • Insurance
  • Property taxes
  • Trash removal
  • Snow/ice removal
  • Management fees

Standard Exclusions

  • Capital improvements
  • Leasing commissions
  • Roof replacement
  • Structural repairs

Common Lease Structures

NNN (most common)Fixed CAM with annual escalation

Common Billing Errors

  • Including roof repairs as maintenance instead of capital
  • Charging tenants for vacant-suite utilities (if landlord leaves lights on)
  • Overstating management fees as a percentage of a small CAM pool

Relevant BOMA Standards

  • ANSI/BOMA Z65.5 (Retail Buildings)

Strip Mall CAM Context

Strip malls are typically simpler CAM environments but disputes arise around deferred maintenance. Landlords may attempt to pass through years of neglected parking lot or roof work as operating expenses rather than capital.

Industry Benchmarks

Avg Occupancy (2025)
95.8%
Public REIT average
Typical Recovery Ratio
88-95%
Brixmor reported 92.7% (record). NNN retail typically 90-95%. Gross leases lower.

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

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