What is a non-cumulative CAM cap and how should it be calculated?

A non-cumulative CAM cap limits the year-over-year increase in controllable CAM to a fixed percentage (e.g., 5%) calculated fresh each year. If Year 1 controllable CAM is $10.00/SF and the cap is 5%, Year 2 maximum is $10.50/SF, regardless of what prior years showed. A cumulative cap would allow unused prior-year capacity to roll forward, potentially enabling larger spikes.

How do I know if my pro-rata share denominator is correct?

Request the current building GLA certificate or site plan showing all built square footage. Compare the denominator used in your reconciliation to the total built GLA. Any exclusion, outparcel, vacant space, anchor tenant space, should be explicitly authorized by your lease. Unauthorized exclusions increase your share and are recoverable.

What is a non-cumulative CAM cap and how should it be calculated?

A non-cumulative CAM cap limits the year-over-year increase in controllable CAM to a fixed percentage (e.g., 5%) calculated fresh each year. If Year 1 controllable CAM is $10.00/SF and the cap is 5%, Year 2 maximum is $10.50/SF, regardless of what prior years showed. A cumulative cap would allow unused prior-year capacity to roll forward, potentially enabling larger spikes.

How do I know if my pro-rata share denominator is correct?

Request the current building GLA certificate or site plan showing all built square footage. Compare the denominator used in your reconciliation to the total built GLA. Any exclusion, outparcel, vacant space, anchor tenant space, should be explicitly authorized by your lease. Unauthorized exclusions increase your share and are recoverable.

CAM Audit for Dollar Stores

Discount retail operators with thin margins and large NNN lease portfolios. Dollar store chains occupy strip center anchor and junior anchor positions with high pro-rata shares. GLA manipulation and management fee overcharges are the highest-frequency CAM violations in this category. Annual CAM exposure for this tenant type ranges up to $8,000–$25,000. CamAudit runs 12 forensic detection rules specific to your lease structure in under five minutes.

Typical Lease Structure

Triple Net (NNN)

Avg. Locations

100–2,000+

Annual CAM Exposure

$8,000–$25,000

Lease Structure

Triple Net (NNN), tenant pays base rent, property taxes, insurance, and CAM. Annual reconciliation. CAM caps on controllable expenses are frequently negotiated.

CAM Vulnerabilities for Dollar Stores

Landlords manipulate the GLA denominator by excluding outparcels or vacant space that should be included, increasing the dollar store's pro-rata share. Management fees are applied to gross CAM pools including non-controllable expenses. CAM caps are sometimes calculated cumulatively rather than non-cumulatively, as the lease requires.

Most Common Overcharges

1Pro-rata share denominator excludes outparcels or specific tenant spaces, inflating the share
2Management fee applied to property taxes and insurance excluded from the fee base under the lease
3CAM cap applied cumulatively rather than non-cumulatively, allowing larger annual spikes
4Capital improvements classified as maintenance to avoid the CAM cap
5Insurance premium increases passed through without documentation of actual policy changes

Watch For This Trigger

Pro-rata share fraction suddenly increases in the annual reconciliation with no corresponding change in the tenant's square footage or building GLA.

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Precedent & Case Context

Wal-Mart Stores v. D.H. Holmes examined CAM cap application methodology and confirmed that non-cumulative CAM caps must be computed fresh each year based on the prior year's actual controllable CAM, cumulative application that carries unused cap space forward is a breach of the lease.

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Other Tenant Types

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Related Resources

ResourcesLease Types and CAM Structures ToolsFree CAM Audit Tools ToolsPro-Rata Share Calculator GlossaryCAM Glossary

Frequently asked questions

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.