Skip to main content

Fixed CAM vs Traditional Reconciliation Modeler

Compare what you would recover under traditional CAM reconciliation vs a Fixed CAM structure (flat $/SF + annual escalator) over 3-5 years.

Fixed CAM charges tenants a flat per-SF rate that escalates annually (typically 3 to 5%), replacing the traditional reconciliation process. Fixed CAM removes year-end true-ups and cuts admin work. But when actual expenses grow faster than the escalator, recovery falls short.

Why this matters

Fixed CAM is common because it removes reconciliation complexity. But when expenses grow faster than the fixed escalator, you recover less. This modeler shows the dollar impact year by year.

Modeling Period

Historical Data (Per Year)

Year 2022

Year 2023

Year 2024

Year 2025

Year 2026

Fixed CAM Terms

$
3.0%
0%10%

Year-by-Year Comparison

Fill in historical data and Fixed CAM terms above to see the year-by-year comparison.

Summary & Recommendation

Enter your email to see revenue and asset value projections.

Total Traditional Recovery

-

Total Fixed CAM Revenue

-

Cumulative Delta Over Period

-

Average Annual Difference

-

Frequently Asked Questions

What is Fixed CAM?
Fixed CAM (also called 'flat CAM' or 'CAM cap with no reconciliation') charges tenants a set per-square-foot rate that increases by a fixed percentage each year. Unlike traditional CAM reconciliation, there is no year-end true-up. The tenant pays the same amount regardless of actual expenses.
Is Fixed CAM better for landlords or tenants?
Fixed CAM benefits tenants by giving expense predictability and removing year-end surprise bills. Landlords get less admin work but take on the risk that actual expenses may exceed the fixed charge, especially in high-inflation years or when operating costs spike.
When does traditional CAM reconciliation recover more than Fixed CAM?
Traditional reconciliation recovers more whenever actual operating expenses grow faster than the fixed escalator rate. For example, if Fixed CAM escalates at 3% annually but actual expenses grow 5 to 7%, the landlord loses the difference each year. That gap compounds over the lease term.
Can I convert from Fixed CAM to traditional reconciliation?
Conversion typically happens at lease renewal or amendment. Some landlords include a 'look-back' clause that allows switching to traditional reconciliation if actual expenses exceed the fixed charge by more than a defined threshold (often 10 to 15%).

Related tools

This free tool only gives a rough guess. The numbers may be wrong. Check your own lease and records first. This is not legal or tax advice.

Related Resources

CAM Estimate vs ReconciliationFixed CAM Lease Clause GuideCAM Estimate Forecaster