Real Estate Law
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Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.
The proportionate share for 570 square feet in a commercial structure with 19,940 sq feet is 2.92 percent. So, unless the lease provides that the proportionate share is rounded up to the nearest whole number, your share is slightly over calculated.
What is 1,720 for?
If they are claiming operating expenses are 58,470 ($3 x 19,490 sq ft, then 2.92 percent is $1,707. Probably not enough of a difference to justify the time and expense of an audit.
You can, if the lease allows, demand to see the actual expenses in detail to confirm the charges.
Yes, your calculation is correct and they are over charging on the operating expenses per square foot.
Assuming there are no stops in the CAM and tax pass throughs, you are entitled to a credit, if you have already paid.
What is the significance of the base year in the calculation? Why is it not just the total annual expense times your proportionate share? Why is the landlord reconciling expenses from 6 yrs ago?
CAM and other pass throughs are determined and calculated in accordance with the written lease. Does the lease have any limitations with regard to reconciling the expenses?