CAM reconciliation is the annual process commercial landlords use to settle the gap between the estimated Common Area Maintenance (CAM) charges a tenant paid during the year and the landlord's actual cost of operating the shared areas of a property.
Tenants in most office, retail, and industrial leases pay monthly CAM estimates. After the year closes, the landlord adds up what those shared services really cost and “trues up” each tenant's account—billing the difference if estimates fell short, or issuing a credit if they were too high.
What CAM actually covers
Common Area Maintenance covers the costs of running the parts of a property every tenant shares. Typical CAM expenses include:
- Parking lot upkeep, snow removal, and landscaping
- Common-area utilities, lighting, and HVAC
- Security, janitorial, and trash removal
- Repairs and maintenance of shared structures
- Property management and administrative fees
Estimates vs. actuals: the core idea
At the start of each year the landlord estimates total CAM costs and divides them among tenants by their pro-rata share (usually the tenant's square footage divided by the building's leasable area). Tenants pay 1/12 of that estimate each month. Because it's only an estimate, it's almost never exactly right—which is why reconciliation exists.
A quick example
Say a tenant occupies 10% of a building. The landlord estimated $200,000 in CAM for the year, so the tenant paid $20,000 in monthly estimates. Actual CAM came in at $230,000. The tenant's true share is $23,000, so the year-end reconciliation bills them an additional $3,000 true-up.
The true-up
CAM, NNN, and “CAM recs”
In a triple-net (NNN) lease, tenants reimburse CAM plus property taxes and insurance—each reconciled the same way. Property managers often shorten “CAM reconciliations” to “CAM recs.” Whatever you call it, the goal is the same: a defensible, line-item statement that matches each tenant's payments to real costs.
Why it matters
Done well, CAM reconciliation recovers the operating costs you're owed and keeps tenant relationships healthy. Done poorly, it leaves money on the table or triggers disputes and audits. The hard parts— caps, exclusions, and the occupancy gross-up—are exactly where software helps most.
Automate CAM reconciliation end to end
Plazee tracks caps and exclusions, applies the gross-up, and generates tenant true-up statements in one click.
Start Free TrialFrequently asked questions
What is CAM reconciliation?
CAM (Common Area Maintenance) reconciliation is the annual process of comparing the estimated CAM charges a tenant paid during the year against the landlord’s actual common area expenses, then billing or crediting the difference (the "true-up").
What does "CAM recs" mean?
"CAM recs" is shorthand for CAM reconciliations—the year-end statements that reconcile estimated vs. actual common area maintenance costs for each tenant.
When is CAM reconciliation done?
Most landlords reconcile CAM annually, within 90–120 days after the fiscal or calendar year ends, though the exact deadline is set by each lease.