The total annual CAM expense divided by the building's rentable square footage, producing a per-unit rate used to benchmark expenses and calculate individual tenant charges. This metric is the easiest way to compare your building's costs against market averages.
Cost per square foot equals total operating expenses divided by total rentable square footage. It can be calculated for the entire expense pool or broken down by category (e.g., janitorial cost per SF, management fee per SF). Industry benchmarks from BOMA, IREM, and local real estate associations publish annual cost-per-SF ranges by building class, region, and property type. Significant deviation from benchmarks is a red flag.
A landlord reports total CAM of $8.50 per SF, but the market average for comparable Class B office buildings in the area is $5.75 per SF. The $2.75 per SF premium suggests expenses are inflated, improperly categorized, or include items the lease excludes from the pool.
Calculate your building's cost per square foot and compare it to BOMA or IREM benchmarks for your market and building class. If your building runs significantly above average, request line-item detail to identify which categories are driving the premium.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
