Gross-up provisions allow landlords to normalize variable operating costs as if the building were 95% occupied. When a building is at 40% occupancy, the gross-up can inflate your CAM bill by 2x or more.
TL;DR
Gross-up disputes require proving the adjustment exceeds what the lease authorizes. If your lease says 95% occupancy but the building is at 40%, the math strongly favors you.
Who this is for
Tenants receiving CAM reconciliations where the landlord is applying gross-up adjustments during periods of low building occupancy (under 80%).
Who this is not for
Tenants whose lease has no gross-up provision, or where occupancy is above 90% and gross-up adjustments are minimal.
Gross-Up Violation
CAMAudit's Rule 5 verifies the gross-up percentage, which expenses are subject to gross-up, and whether the calculation methodology matches your lease.
Management Fee Overcharge
Management fees should not be grossed up. They are a percentage-based fee that already scales with gross revenues, not a variable occupancy-driven cost.
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Next Best Step
Scenario pages should bridge from diagnosis into the dispute path and audit proof.
Use the audit process if you still need to validate the billing error.
Use the dispute playbook if the issue is already active.
Run the free audit once you are ready to quantify the overcharge.
Ready to skip the reading and document the overcharge directly?
Find My OverchargesNeed 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.ioThis 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.
