In most office leases, the operating expense/CAM portion of a tenant’s lease costs is estimated at the beginning of each year, and reconciled at the beginning of the following year. Tenants are billed for under-estimates, and credited for over-estimates. Through an affiliated company – provided the size and scope of the lease is adequate, we can audit the operating expenses/CAM charged by one’s landlord to verify that all the costs that are passed through to the tenant are legitimate – and the tenant is not being gouged by management with inappropriate or commercially unreasonable costs.
