Question 1

How does San Francisco's high office vacancy affect CAM charges?

Accepted Answer

With 28.5% office vacancy, San Francisco landlords use gross-up provisions to calculate CAM as if buildings were 95% occupied. This means occupied tenants pay higher CAM than reflects actual building occupancy costs. Review your lease's gross-up clause and verify that variable expenses are properly separated from fixed costs.

Question 2

What is the statute of limitations for CAM disputes in San Francisco?

Accepted Answer

California has a 4-year statute of limitations for written contracts (Cal. Code Civ. Proc. § 337). Under the discovery rule, the clock may begin when you discovered the overcharge. SB 1103 (effective January 1, 2025) provides additional rights for qualified commercial tenants.

Question 3

What CAM overcharges are most common in San Francisco office leases?

Accepted Answer

San Francisco office leases most frequently produce gross-up provision disputes (variable costs grossed up incorrectly), management fee overcharges, and base year errors. Mission Bay biotech leases also have specialized infrastructure cost disputes.

Question 4

How do Mission Bay life sciences CAM charges differ from Financial District?

Accepted Answer

Mission Bay life sciences buildings carry specialized HVAC, lab infrastructure, and biosafety costs that are sometimes pooled with standard office charges. Financial District traditional office leases have more complex multi-tenant operating expense structures with shared amenity and service costs.

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