Texas CAM audit partner guide: Houston and Dallas strip center NNN billing patterns
Texas operates one of the largest commercial real estate markets in the United States, with over 1.2 billion square feet of retail, office, and industrial space across Houston, Dallas-Fort Worth, Austin, and San Antonio. For professionals who advise commercial tenants in these markets, CAM audit is one of the most underserved service lines available. After testing reconciliation samples from published audit cases through CAMAudit, I built this guide specifically for Texas partners: CPAs, franchise advisors, commercial mortgage brokers, and expense reduction consultants who want to add a high-margin forensic service to their existing client relationships.
Texas leases follow standard US commercial practice with one important distinction: there is no statewide statute granting commercial tenants audit rights. Everything flows from the lease. That makes your understanding of lease language the core competency, and it makes CAMAudit's automated detection engine a force multiplier for any Texas partner practice.
Texas NNN lease audit rights: In Texas, commercial tenant audit rights are purely contractual. Texas Property Code Chapter 93 governs commercial tenant remedies for lockouts and retaliation but does not address CAM audit rights. A tenant's right to inspect landlord records depends entirely on the lease audit clause. Leases that are silent on audit rights leave tenants without a statutory fallback, making proactive lease review essential before pursuing any CAM dispute.
Texas commercial lease law and the audit rights gap
Texas Property Code Chapter 93 is the primary commercial landlord-tenant statute in Texas, covering security deposits, lockouts, and retaliation remedies. It does not address CAM reconciliation accuracy, audit rights, or tenant access to landlord expense documentation.
For CAM disputes, Texas commercial tenants operate entirely under contract law. The written contract statute of limitations is four years under Texas Civil Practice and Remedies Code Section 16.004. A CAM overcharge claim is a breach of contract claim. If the lease was breached when the landlord delivered an inflated reconciliation in April 2022, the limitations period runs to April 2026.
This creates a practical urgency for Texas tenants: the 2022 reconciliation year, which captured the first major wave of inflation-period cost increases, is approaching the end of its recoverable window for many tenants.
Lease-defined dispute windows operate as earlier contractual deadlines. If your client's lease requires written objection within 60 days of receiving the reconciliation, that window controls regardless of the four-year statutory period. Many Texas commercial tenants miss these windows entirely because no one is reviewing the reconciliation with enough precision to identify the overcharge before the contractual deadline expires.
For a full overview of what CAM overcharges look like and how the detection process works, see the CAM overcharge detection playbook.
The Texas commercial market: property mix and dominant overcharge patterns
Texas commercial real estate is concentrated in four metro areas, each with a distinct property mix that drives different overcharge patterns.
Houston: strip center and power center retail
Houston is one of the largest retail markets in the country, with approximately 130 million square feet of retail inventory. The market is dominated by strip centers, neighborhood centers, and power centers anchored by national grocery, home improvement, and discount retail chains. Institutional REIT ownership is significant, particularly in the suburban ring around the Energy Corridor, Katy, Sugar Land, and The Woodlands.
The most common Houston retail overcharge patterns:
Management fee overcharges. Houston strip center management fees frequently include both a base percentage (typically 3 to 5 percent of gross revenues collected) and add-on line items labeled as "supervision fee," "administrative oversight," or "property management coordination." Many leases authorize a management fee as a single percentage of revenues without authorizing the add-on charges. When both appear in the CAM reconciliation, the add-ons are an overcharge under CAMAudit's management fee detection rule.
Pro-rata share denominator errors. Power center leases in Houston frequently use denominator methodologies that exclude anchor tenant space from the total GLA used to calculate each in-line tenant's share. A 450,000 SF power center with a 120,000 SF anchor excluded from the denominator results in in-line tenants absorbing a pro-rata share calculated on 330,000 SF instead of 450,000 SF. That 36 percent denominator reduction inflates every in-line tenant's share by approximately 36 percent on every CAM line item.
Controllable expense cap violations. Houston commercial leases negotiated between 2017 and 2020 frequently include controllable expense caps of 3 to 5 percent per year. The 2022 and 2023 inflation period pushed operating costs well beyond those caps for many property types. CAMAudit's Rule 8 (Controllable Expense Cap Overcharge) specifically identifies reconciliations where actual controllable expense increases exceed the lease cap.
| Overcharge Type | Houston Frequency | Primary Property Type |
|---|---|---|
| Management fee overcharge | High | Strip center, neighborhood center |
| Pro-rata share denominator error | High | Power center |
| Controllable expense cap violation | Medium-high | All retail types |
| Insurance overcharge | Medium | Older strip centers |
| Excluded service charges | Medium | Institutional REIT properties |
Dallas-Fort Worth: office, industrial, and mixed-use
DFW is one of the fastest-growing office and industrial markets in the country, with significant technology, government contractor, and logistics tenant concentration. Office leases in DFW frequently use modified gross or full-service structures with base year arrangements. Industrial leases are predominantly NNN.
Base year errors in DFW office leases. A base year error occurs when the landlord establishes an artificially low base year expense figure, inflating the tenant's annual operating expense obligation in every subsequent year. DFW office leases signed in 2020 and 2021, when building occupancy was suppressed, are particularly vulnerable because low occupancy years produce artificially low base year operating costs. CAMAudit's Rule 7 (Base Year Error) detects this pattern.
Pro-rata share errors in industrial parks. The I-35E and I-635 industrial corridors contain large multi-tenant distribution and flex industrial parks where pro-rata share denominator errors are common. When a landlord calculates a tenant's share using the occupied square footage rather than the total leasable square footage of the park, tenants in partially occupied parks pay an inflated share.
Controllable expense cap violations in suburban office. DFW suburban office tenants in Plano, Frisco, Irving, and Addison frequently negotiated expense caps as part of tenant improvement packages during the 2018 to 2021 lease cycle. Many of those caps are being breached in 2024 and 2025 reconciliations.
Austin and San Antonio
Austin's commercial market is characterized by rapid growth, a high concentration of technology tenants, and significant new construction in the Domain, South Congress, and East Austin corridors. San Antonio's market is more stable, with healthcare, military contractor, and retail concentration.
Austin technology tenants frequently negotiate sophisticated lease protections including expense exclusion lists, management fee caps, and gross-up provisions. These negotiated protections are also the most frequently violated, because institutional landlords apply standardized billing systems that do not always reflect individual lease terms.
San Antonio strip center tenants face the same management fee and controllable expense cap patterns seen in Houston, at slightly lower base rates.
"I built CAMAudit because the same billing errors keep appearing in Texas commercial leases regardless of market or property type. Houston strip center tenants get hit with management fee add-ons their leases never authorized. DFW office tenants absorb base year manipulations that compound every year. The detection rules I designed target these exact patterns." — Angel Campa, Founder, CAMAudit
White-label economics for Texas partners
The Texas market creates strong economics for white-label CAM audit partners. The combination of high property values, large NNN lease portfolios, and institutional landlord ownership means average findings per audit are consistently higher than national averages.
| Bundle Tier | Annual Cost | Credits | Per-Audit Cost | Retail at $750 flat fee | Gross Margin |
|---|---|---|---|---|---|
| Starter | $990 | 25 | $39.60 | $750 | 94.7% |
| Growth | $2,100 | 60 | $35.00 | $750 | 95.3% |
| Scale | $4,500 | 150 | $30.00 | $750 | 96.0% |
| Enterprise | $7,500 | 300 | $25.00 | $750 | 96.7% |
Texas CPAs and consultants billing at $750 to $1,200 per engagement retain margins above 94 percent at every tier. Partners who use contingency pricing (typically 20 to 30 percent of documented overcharge recovery) on Houston retail portfolios with consistent management fee findings generate higher revenue per engagement when average findings exceed $3,000.
Use the white-label margin calculator to model your specific practice volume and pricing structure.
Partner types with highest fit in Texas
CPAs and accounting firms. Texas CPAs with small and mid-size business clients who lease retail or office space under NNN or modified gross leases are the highest-volume partner category. The entry point is the annual occupancy cost review. When a client's CAM true-up increases more than 10 percent year over year, that is a natural referral trigger.
Franchise advisors and brokers. Texas has one of the largest franchise tenant populations in the US. Franchise operators with multiple NNN-leased locations in the Houston and DFW metro areas benefit from systematic annual CAM review across their entire portfolio. Franchise advisors who already manage lease renewals and territory agreements can add annual CAM review as a standard portfolio management service.
Commercial mortgage brokers. Lenders and brokers refinancing NNN-leased commercial properties need accurate occupancy cost data for underwriting. A CAM audit that identifies recoverable overcharges improves the borrower's effective occupancy cost, which affects DSCR calculations and debt service coverage. Commercial mortgage brokers who add CAM review to their refinance workflow provide measurable value and build a repeat engagement model.
Expense reduction consultants. Texas has an active expense reduction consulting market. Consultants who audit utility contracts, workers' compensation premiums, and telecom costs for commercial clients can add CAM audit as an adjacent service line with no additional technology investment.
Qualification criteria for Texas client portfolios
Not every Texas commercial tenant is a strong CAM audit candidate. The highest-yield profiles:
- NNN lease in a multi-tenant property of 50,000 SF or larger
- Lease term of three or more years with at least one reconciliation received
- Annual CAM charges of $15,000 or more
- CAM charges that increased more than 8 percent year over year in any year since 2021
- Management fee in CAM reconciliation of more than 3 percent of operating expenses
- Property owned or managed by an institutional REIT or regional property management company
For clients who meet three or more of these criteria, the audit is likely to be productive. CAMAudit's free scan confirms whether findings exist before the client makes any payment decision.
Frequently Asked Questions
Does Texas have a statutory audit right for commercial CAM disputes?
No. Texas has no statewide statute granting commercial tenants the right to audit landlord CAM records. Texas Property Code Chapter 93 covers commercial tenant remedies for lockouts and retaliation, but it doesn't address CAM audit rights. All CAM audit rights in Texas come from the lease itself. If your client's lease is silent on audit rights, the landlord is not legally required to produce supporting documentation.
What is the statute of limitations for CAM overcharge claims in Texas?
Texas applies a 4-year statute of limitations for written contract claims under Texas Civil Practice and Remedies Code Section 16.004. The clock typically starts when the CAM reconciliation containing the overcharge is delivered. A tenant auditing in 2026 can generally recover overcharges from reconciliations delivered as far back as 2022, assuming no lease-defined dispute window expired earlier.
What CAM overcharges are most common in Houston strip centers?
Houston strip center tenants most commonly encounter management fee overcharges above the lease cap, pro-rata share denominator errors in power center leases, and controllable expense cap violations from the 2022 to 2024 inflation period. Institutional REIT ownership of Houston retail properties has increased the frequency of management fee structures that include both a base percentage and add-on administrative charges that many leases don't authorize.
What CAM overcharges appear most often in Dallas-Fort Worth commercial leases?
DFW tenants in office and industrial properties frequently see base year errors in modified gross leases, pro-rata share denominator manipulation in multi-tenant industrial parks, and controllable expense cap violations. The DFW tech and logistics tenant concentration means many leases include negotiated expense caps that landlords don't consistently honor when costs spike.
How do Texas-based CPAs add CAM audit as a service line?
Texas CPAs with commercial tenant clients can offer CAM reconciliation review as an advisory service extension. The workflow is straightforward: review the client's reconciliation for year-over-year spikes, identify lease provisions like management fee caps and expense exclusion lists, then run the documents through CAMAudit. Partners deliver findings under their own firm brand with the white-label program. The white-label margin calculator models the economics for a Texas CPA practice.
What types of Texas commercial properties generate the most CAM audit findings?
Strip centers and power centers in Houston, Dallas-Fort Worth, Austin, and San Antonio generate the most CAM audit findings in Texas. The high density of NNN-leased multi-tenant retail, combined with institutional REIT ownership of major centers, creates systematic billing patterns that CAMAudit's detection rules flag consistently. Medical office and flex industrial properties are secondary high-yield categories.
How does the 2022 reconciliation deadline affect Texas tenants reviewing CAM now?
The four-year limitations period under Texas Civil Practice and Remedies Code Section 16.004 means that reconciliations delivered in spring 2022 expire in spring 2026 for most tenants. If your client received their 2022 annual reconciliation and has never disputed it, the window to recover overcharges from that year is closing. Leases with shorter contractual dispute windows may have already expired. Any Texas client with NNN leases active in 2022 and 2023 should be reviewed before the statutory window closes.
What lease protections do Austin technology tenants typically negotiate, and are they enforced?
Austin technology tenants negotiating leases from 2018 to 2022 frequently secured expense exclusion lists, management fee caps of 3 to 4 percent, and gross-up provisions capping occupancy at 95 percent for expense calculation purposes. These protections exist in the lease; the problem is enforcement. Institutional landlords apply standardized reconciliation systems that do not always adjust for individual lease terms. After testing reconciliation samples from Austin technology tenant leases through CAMAudit, the most common finding is a management fee applied at the building standard rate rather than the negotiated cap in the specific tenant's lease.