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Public-record case study

Starbucks Salinas Valley Memorial CA: true-up overcharge case study

A public-record retail CAM case study showing $3,076 in true-up overcharges: landlord billed $11,500 reconciliation true-up against a correct amount of $8,424.

Starbucks Corporation2022 statementNNN leaseRetail

Apparent overcharge

$3,076

Findings

1

High confidence

$3,076

Source

SVMHS Board of Directors meeting packet, April 18, 2023 (CA Gov't Code § 54957.5)
2022 total operating expenses: $285,600.
Tenant share: $11,424. Estimates paid: $3,000.
Correct true-up: $8,424. Billed: $11,500. Overcharge: $3,076.

What happened

Starbucks' Salinas Valley lease requires monthly CAM estimates with an annual true-up. For 2022: total operating expenses were $285,600, Starbucks' 4% share was $11,424, estimates paid were $3,000, making the correct true-up $8,424. The landlord billed $11,500, which is $3,076 above the correct amount, well outside the $57.12 tolerance threshold.

Findings from the pipeline

Rule 18: Estimated Payment True-Up Error

high confidence

$3,076

True-up billed (11500.00) exceeds expected (8424.00) by 3076.00

Math proof

Tenant share: 285600.00 x 0.04 = 11424.00; Estimates billed: 3000.00; Expected true-up: 11424.00 - 3000.00 = 8424.00; Landlord billed: 11500.00; Overcharge: 11500.00 - 8424.00 = 3076.00

Statement references

  • Reconciliation True-Up

Lease evidence

  • Monthly CAM estimates with annual reconciliation true-up.
  • Pro-rata share: 4.00% (3,840 SF / 96,000 SF).

Why this matters for your firm

True-up errors are often invisible because tenants focus on the total annual CAM cost rather than checking whether the year-end settlement correctly accounts for estimated payments already made. The math is simple but requires knowing both the annual total and the monthly estimates, data that appears in different parts of the reconciliation statement.

Correction package excerpt

Request for Cooperative Review of Certain Line Items. The automated review flagged a true-up overcharge of $3,076.00 : billed true-up of $11,500 exceeds the expected $8,424 (tenant share $11,424 minus estimates paid $3,000).

Detection guide

True-up error guide

Lease language

CAM reconciliation checklist

Frequently Asked Questions

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Public-record note

This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by Starbucks Corporation or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.

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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or ‘binding and conclusive’ provisions, and on applicable state law.

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