Skip to content
CAMAudit.io
CAM Audit SoftwareLease Audit SoftwarePricing
Log inScan My Lease
CAMAudit.io

Forensic CAM audit software for commercial tenants. Find the money you're owed.

Product

  • CAM Audit Software
  • Lease Audit Software
  • CAM Reconciliation Software
  • Scan My Lease
  • Pricing
  • How It Works

Learn

  • CAM Charges Guide
  • CAM Reconciliation Guide
  • What Is a CAM Audit?
  • Resources Hub
  • NNN Fundamentals
  • Overcharge Detection
  • Lease Language
  • Dispute & Recovery
  • Glossary

Explore

  • Industry Guides
  • CAM Audit by State
  • Case Studies
  • Comparisons
  • Lease Types
  • Tenant Types
  • CAM Line Items
  • Free Tools

Company

  • About
  • Contact
  • Partners
  • Privacy
  • Terms
  • Disclaimer

Related Tools

  • Lextract: Lease Abstraction (opens in new tab)
  • CapVeri: CRE FinOps (opens in new tab)

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.

State statute of limitations periods apply to written contracts and range from 3 to 10 years. Your actual lookback window may be shorter based on your lease.

CAMAudit is a document analysis platform, not a law firm, and nothing on this site constitutes legal advice. Consult a licensed real estate attorney before initiating any dispute or legal proceeding.

© 2026 CAMAudit. All rights reserved.

Scan My Lease
  1. Home
  2. /Resources
  3. /Buying Scenarios
  4. /My base year operating expenses seem artificially low
I'm Researching

My base year operating expenses seem artificially low

Angel Campa, FounderCAMAudit
Last updated: April 2026

A base year that is artificially low means every future year reconciliation will show a larger increase, and you will pay more above the baseline for the life of your lease. Landlords sometimes set the base year during a period of reduced occupancy, deferred maintenance, or tax abatement, knowing that expenses will revert to normal levels and the tenant will absorb the difference. CAMAudit analyzes the base year figures for anomalies.

TL;DR

An artificially low base year inflates every reconciliation for the entire lease term; correcting it produces cumulative savings that compound annually.

Who this is for

Tenants who suspect that their base year operating expenses were set during an abnormal period and do not reflect typical building operating costs.

Who this is not for

Tenants on a NNN lease with no base year structure, where the tenant pays actual operating expenses rather than increases over a baseline.

What CAMAudit Checks in This Scenario

Rule 7

Base Year Error

CAMAudit compares the base year operating expenses to subsequent years and flags anomalies that suggest the base year was artificially depressed, including unusually low line items, missing expense categories, and tax abatement periods.

Rule 5

Gross-Up Violation

The scan checks whether the base year expenses were grossed up as required by your lease. If base year expenses were calculated at low occupancy without gross-up, but current year expenses are grossed up, the comparison is unfairly skewed.

Rule 10

Tax Overallocation

CAMAudit flags base year tax amounts that reflect a tax abatement or assessment appeal that has since expired, which would make the base artificially low compared to current taxes.

What to Do Next

  1. 1Identify your base year from the lease and request the full operating expense statement for that year from the landlord.
  2. 2Compare the base year expenses to the first two or three subsequent years to identify any line items that are significantly lower in the base year.
  3. 3Check whether the base year coincided with a period of low occupancy, construction, tax abatement, or deferred maintenance.
  4. 4Upload your lease and all available reconciliation statements to CAMAudit for base year analysis.
  5. 5If the base year appears artificially low, review your lease for any provision that requires base year gross-up or adjustment.
  6. 6Negotiate a base year correction with your landlord if the analysis supports it, or raise the issue at your next renewal.
Free scan · No account required

Check Your CAM Statement

Scan My Lease Now
See a sample report first
Free scan · No account required

Run a Free CAM Audit Scan

Upload two PDFs. 14 detection rules. Under 15 minutes. Free.

Find My OverchargesSee a sample report first

Related Guides

IndustriesGuide
Law Firm Tenants: Base Year Errors Are the #1 CAM Overcharge in Class A Office Space
CAM OverchargesGuide
Capital vs. Operating Expenses in CAM: IRS Rules and What Your Landlord Is Hiding
CAM OverchargesGuide
Management Fee on Excluded Expenses: The Inflated Base Problem
CAM ReconciliationGuide
Expense Stop vs. Base Year: Which Costs You More?

Explore Related Resources

Tenant TypeRetail StoreTenant TypeMedical OfficeDetection RuleGross-Up ViolationDetection RuleBase Year ErrorScenarioMy CAM reconciliation just went up 30% or more year over yearScenarioAn anchor tenant left and my CAM charges spiked

Next Best Step

Choose your next move

Scenario pages should bridge from diagnosis into the dispute path and audit proof.

What is a CAM audit?

Use the audit process if you still need to validate the billing error.

See the CAM dispute guide

Use the dispute playbook if the issue is already active.

Start Free Audit

Run the free audit once you are ready to quantify the overcharge.

Ready to skip the reading and document the overcharge directly?

Find My Overcharges

Relevant Tenant Types

Retail StoreMedical OfficeOffice

Related Scenarios

Are My CAM Charges Too High? How to TellIs it worth auditing my NNN lease CAM chargesWhat Is Included in CAM Charges (And What Shouldn't Be)How to verify my pro-rata share is calculated correctlyHow to Read a CAM Reconciliation Statement

Related Resources

Tenant TypeRetail StoreTenant TypeMedical OfficeResourcesCAM Overcharge Detection GuidesToolsFree CAM Audit ToolsGlossaryCAM Glossary

Frequently asked questions

Need to extract lease terms before your audit?

A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.

Go to lextract.io

This 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.