GSA Cincinnati federal building: dollar-cap management fee overcharge case study
A public-record CAM case study showing $25,500 in management fee overcharges on a GSA lease: landlord billed $67,500 against a $42,000 absolute dollar cap.
What happened
The GSA lease at 36 E. 7th Street, Cincinnati fixed the management fee at a hard dollar cap of $42,000 per year. The 2022 reconciliation billed $67,500, which is $25,500 above the cap. No percentage formula applied; the dollar ceiling was absolute. The discrepancy was identified through FOIA Request #2023-GS-0081.
Findings from the pipeline
Rule 3: Management Fee Overcharge
high confidence
$25,500
Management fee of $67,500.00 exceeds the dollar cap of $42,000.00. Overcharge: $25,500.00.
Lease evidence
Management Fee shall not exceed $42,000 per calendar year. Section 8.2(b).
Section 8.2(b), page 15
Math proof
billed=67500.00, dollar_cap=42000.00, overcharge=25500.00
Lease evidence
- Management fee capped at $42,000 per calendar year (absolute dollar cap, Section 8.2(b)).
- NNN lease: tenant responsible for 8% pro-rata share of operating expenses.
Why this matters
Dollar-cap management fee violations are harder to spot than percentage caps because they require knowing the cap amount and comparing it to the absolute dollar billed, not just checking the rate. Federal leases are a rich source of these overcharges because the cap amounts are fixed at execution and rarely indexed.
Dispute letter draft excerpt
Request for Cooperative Review of Certain Line Items. The automated review flagged an apparent discrepancy of $25,500.00 for the 2022 reconciliation year: management fee exceeds the $42,000 annual dollar cap.
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