Repairs to the building's load-bearing structural elements including foundation, exterior walls, roof structure, and building envelope.
Key Takeaways
| Lease Type | Recoverable? | Controllable? |
|---|---|---|
| NNN | No | No |
| Modified Gross | No | No |
| Full-Service Gross | No | No |
CapEx Risk: This line item is commonly used to disguise capital expenditures as operating expenses. Verify all invoices against GAAP standards.
Approximate budget share: 0-2% of total CAM pool.
Structural repairs involve the load-bearing skeleton of a building: foundations, structural columns and beams, exterior bearing walls, structural roof decks, and the building envelope that keeps weather out. These elements are almost always treated as landlord capital obligations rather than recoverable operating expenses. In standard NNN leases, the landlord retains responsibility for structural repairs even though most other operating costs are passed to tenants. In modified gross and full-service gross leases, structural repairs are excluded by definition. The reason is economic: structural failures typically arise from deferred maintenance or construction defects that predate the tenant's occupancy. Holding tenants financially responsible for correcting a condition they did not create and cannot control is contrary to standard industry practice. The dispute risk is highest when a landlord bundles structural remediation into a broader invoice labeled "building repairs" or "exterior maintenance." Any invoice involving an engineer, a structural contractor, or a permit for building element work should be treated as a structural repair until proven otherwise, and challenged accordingly.
Overcharge Risk
$2,000-$15,000/year
typical annual overcharge when this line item is disputed
Landlords attempt to pass foundation repairs, structural wall repointing, and building envelope restoration through the CAM pool, particularly in NNN leases with ambiguous structural exclusion language.
This line item is commonly used to disguise capital expenditures as operating expenses. Capital expenditures must be excluded from CAM or amortized over their useful life per GAAP. If you see unusually high or one-time charges in this category, request all invoices and scope-of-work documentation before paying.
| Legitimate Charge | Suspicious Charge |
|---|---|
| Interior partition repairs, non-structural wall patching, and surface recoating as operating maintenance | "Foundation repair," "structural reinforcement," or "masonry restoration" billed as a CAM line item |
| Routine exterior caulking and weatherproofing on non-structural surfaces | Building envelope restoration following an engineering assessment, billed as routine upkeep |
| Structural repairs explicitly excluded by lease language with no tenant cost allocation | One-time large structural invoice appearing in CAM pool with no explanation or prior maintenance history |
| Engineering or permit costs excluded from CAM as landlord overhead | Engineering reports or structural inspection fees listed as recoverable operating expenses |
Structural repairs are the landlord's capital obligation in virtually all lease structures. Even in NNN leases, the landlord retains responsibility for the structural shell. Challenge any structural repair charge as beyond the scope of recoverable CAM. Request engineering reports and scope-of-work documents to confirm the structural nature of the work.
Check Your Structural Repairs Charges
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