Calculators → CAM recovery

CAM recovery calculator

In a mixed-use building the apartments above do not pay CAM, so only the commercial square footage shares the recoverable pool — and whatever is not recovered, the landlord eats. This works out each suite’s share at its own lease type and shows you the gap.

The building

Pro-rata share is each suite divided by the commercial rentable area, not the whole building. Residential square footage above the shops does not share these costs.

Recoverable pool

Annual costs the leases allow you to pass through. Leave out anything your leases exclude — capital items and the landlord’s own costs usually sit outside.

The suites

Recovery 100% is triple net, 0% is fully gross, and anything between is a modified gross or capped lease.

Recovered from tenants
—
Total CAM billed across every suite, after vacancy.

The reconciliation

Recoverable pool—
Recovered from tenants—
Landlord absorbs—
Recovery ratio—
Pool per sq ft—
Commercial base rent—
Total commercial income—

Suite by suite

SuiteShareCAM due

This is one line of a mixed-use model

The full Rental Deal Analyzer runs the apartments and the shops together — CAM feeding NOI, NOI driving the sale at your exit cap, and the whole thing flowing through debt to a levered IRR and an investor deck.

Open the full model free

No credit card. One saved project on the free plan.

How CAM actually divides

Common area maintenance is the shared cost of running a building — taxes, insurance, common utilities, repairs, landscaping, snow removal, cleaning — billed back to commercial tenants in proportion to the space they occupy.

The arithmetic is: suite sq ft ÷ commercial rentable sq ft × recoverable pool × recovery %. The three places people get it wrong are all in that line.

Mistake one: dividing by the whole building

In mixed-use, the apartments above do not pay CAM. If you divide a suite by total building area including the residential floors, every tenant is under-billed and the landlord quietly absorbs the difference. The denominator is commercial rentable area only — which is why this calculator asks for that figure specifically.

Mistake two: treating every lease as triple net

At 100% recovery a tenant pays their full share. A gross lease recovers nothing — it is baked into a higher base rent instead. Modified gross, caps, base-year stops and exclusions all land somewhere in between, and a building with a mix of lease types never recovers 100% of its pool.

Mistake three: forgetting vacancy

An empty suite still has a pro-rata share, and nobody is there to pay it. That share falls on the landlord. This calculator reduces recovery by the vacancy rate you enter, which is why the recovery ratio never reaches 100% unless the building is full and every lease is net.

What the gap means when you are buying

The unrecovered share is a real annual cost that reduces NOI, and at a 6% cap rate every $10,000 of it is about $167,000 off what the building is worth. A rent roll showing strong base rents can still hide a weak recovery position — always ask for the leases, not just the summary.

What this does not do

This is a calculation tool, not advice. Every result depends entirely on the assumptions you enter — verify them before acting on a deal.

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