CAM Reconciliation Season: What to Expect and When [2026 Guide]
CAM reconciliation season runs January through April. Your landlord must deliver the annual reconciliation statement within 90–120 days of year-end. You typically have 30–180 days after that to dispute. Missing that window can significantly limit your options.
40% of commercial CAM reconciliations contain material billing errors that tenants could dispute with documentation (Tango Analytics, 2023)
The CAM Reconciliation Calendar
Most commercial leases run on a calendar year, making January through April the peak delivery window for annual reconciliation statements. Here is what typically happens each month:
| Month | What Happens |
|---|---|
| October–November | Landlord begins compiling year-end data, preparing expense allocations |
| December | Year closes; final utility bills, management fees, and insurance invoices processed |
| January–February | Reconciliation statements issued for prompt-paying landlords; early dispute windows open for prior-year late statements |
| March | Peak delivery month for calendar-year leases; most tenants receive statements in this window |
| April–May | Late statements delivered; some landlords miss self-imposed or lease-mandated delivery deadlines |
| June–July | Dispute windows closing for January-delivered statements with 180-day windows |
| August–October | Escalation territory for unresolved disputes; mediation timelines active |
| November–December | Year-end again; prior-year disputes ideally resolved before new statements arrive |
If your lease runs on a non-calendar fiscal year (common in retail), shift this calendar accordingly. A March 31 lease year-end means statements typically arrive June through August, with dispute windows extending into late fall.
What Triggers a Reconciliation Statement
The annual CAM reconciliation is triggered by the close of the lease year. Here is the chain of events:
Year-end close: The landlord's property management software closes the operating expense ledger for the period. All invoices, purchase orders, and management fee entries must post before this can happen.
Expense allocation: Operating expenses are allocated across tenants according to each tenant's pro-rata share (typically leased square footage divided by total rentable area). This step is where many errors originate, especially if the denominator calculation includes or excludes certain tenant types.
Estimate reconciliation: Your monthly CAM estimates (paid throughout the year) are compared against actual expenses. If actual costs exceeded estimates, you owe a true-up payment. If actual costs came in below estimates, you are owed a credit or refund.
Statement preparation: The property manager or accounting team assembles the reconciliation document, typically showing expense categories, totals, your pro-rata percentage, and the resulting balance.
Statement delivery: The reconciliation is delivered to you by mail, email, or through a tenant portal. The delivery date matters because it starts your dispute window clock.
One important note: many tenants assume they need to wait for the reconciliation to arrive before requesting backup documentation. They do not. You can request the supporting general ledger and invoices at any time after the lease year closes, not just after you receive the statement.
Typical Dispute Windows by Lease Type
Dispute windows vary significantly by lease type and how the audit rights clause is drafted. Always check your specific lease language, as these are general ranges:
| Lease Type | Typical Dispute Window | Common Variations |
|---|---|---|
| Standard retail NNN | 30–90 days after statement delivery | Some allow 6 months |
| Office (Class A multi-tenant) | 60–180 days | May include 12-month audit right separate from dispute window |
| Industrial NNN | 30–60 days | Often shorter, stricter |
| Ground lease | 90–180 days | Typically more negotiable |
| Modified gross (MG) | 30–90 days | Sometimes no formal dispute window if CAM is limited |
| REIT-managed properties | 30–60 days | Standardized; REIT forms favor shorter windows |
The "account stated" doctrine is the legal risk underlying all dispute windows. If you receive a statement, do not dispute it within the window, and make payment, some jurisdictions treat your payment as acknowledgment that the statement is correct. This is not a universal rule, and courts have split on how strictly to apply it in commercial lease contexts, but it is a real risk worth taking seriously.
What to Do When Your Statement Arrives
Red Flags in a Reconciliation Statement
When the statement arrives, scan for these warning signs before you do the full audit:
Management fee percentage higher than your lease cap. If your lease limits management fees to 4% and the statement shows 5%, that is a direct overcharge you can dispute immediately.
Year-over-year increase above your CAM cap. If your lease includes a controllable expense cap of 5% and total controllable expenses increased 12% over the prior year, the excess is recoverable.
Capital expenditure line items. Any reference to "roof replacement," "HVAC installation," "parking lot resurfacing," or "capital improvements" in an operating expense reconciliation is a red flag. These are generally not recoverable as operating expenses unless the lease explicitly provides for amortization.
Insurance billed at amounts that exceed your pro-rata share of the actual premium. Request the certificate of insurance and compare the actual premium against what you are being charged.
Gross-up applied to fixed expenses. Property taxes and insurance are fixed costs. They do not scale with occupancy. Grossing them up is an overcharge.
Denominator that differs from prior years without explanation. If your pro-rata share percentage changed but your square footage did not, ask for the denominator calculation.
Line items without vendor detail. Vague descriptions like "miscellaneous repairs" or "building services" covering large dollar amounts require invoice backup before you accept them.
Charges for leasing commissions, tenant improvement work, or legal fees. These are almost universally excluded from CAM in well-drafted leases.
Missing or Late Reconciliation: Your Rights
If the reconciliation statement does not arrive by the lease-mandated deadline, you have options:
Review your lease delivery requirements. Most leases require delivery within 90 to 180 days of year-end. Some specify that if the landlord fails to deliver by the deadline, you are not obligated to pay any true-up amount for that year. Others treat late delivery as a forfeiture of the landlord's right to collect a deficiency.
Send a written demand for delivery. Put your request in writing, cite the lease section requiring timely delivery, and set a specific response deadline. This creates a paper trail.
Do not stop paying estimates. Even if the reconciliation is late, continue paying your monthly CAM estimates. Withholding estimates because the reconciliation has not arrived is generally a lease default and carries significant risk.
Request an extension on your dispute window if needed. If the reconciliation arrives late and your dispute window starts from delivery date, you have a full window regardless. But if the window runs from year-end, a late delivery can unfairly compress your review time. Write to the landlord requesting an extension proportional to the delivery delay.
"CAMAudit processes reconciliation statements year-round because overcharges do not expire when reconciliation season ends. We see tenants submitting statements from three years ago that no one reviewed. The dispute window may be closed, but multi-year audits during the lookback period catch compounding errors that add up to meaningful recovery amounts." — Angel Campa, Founder of CAMAudit
Frequently Asked Questions
When do CAM reconciliation statements come out?
CAM reconciliation statements for calendar-year leases are most commonly delivered January through April. March is the peak delivery month. Some landlords deliver as early as January; others miss self-imposed deadlines and deliver in May or June. Leases with non-calendar fiscal years shift this window accordingly.
What if my landlord is late delivering the CAM reconciliation?
Check your lease for the delivery deadline. Many leases state that if the landlord fails to deliver within 90 to 180 days of year-end, you are not obligated to pay any true-up amount for that year. Send a written demand for delivery citing the relevant lease section. Do not stop paying monthly estimates while you wait.
How long do I have to dispute CAM charges?
Dispute windows typically run 30 to 180 days after the reconciliation statement is delivered. Standard retail NNN leases often allow 60 to 90 days. Office leases with explicit audit rights clauses may allow 12 months. Always check your specific lease language, since the account stated doctrine may limit your rights if you miss the window.
Can I request an extension on my CAM dispute deadline?
You can request an extension in writing, and many landlords will agree to reasonable requests, especially if you are mid-audit and acting in good faith. Your ability to demand an extension depends on your lease language. If the landlord delivered the reconciliation late, you have a stronger argument for a proportional extension.
What happens if I miss the CAM dispute window?
Missing the dispute window significantly limits your options. Under the account stated doctrine, payment after a missed window may be interpreted as acceptance of the charges. However, you may still have remedies under your state's statute of limitations for contract claims (typically 4–6 years), particularly if the overcharge constitutes fraud or breach of contract rather than simple billing error.