Commercial Real Estate Investment/common area maintances charge

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Expert: - 10/27/2008


Question
i am tannents @ strips center for 20 years.as per lease i am suppoesed to pay 2% cam charges.in this connection,landlord is billing $200 per month as additional rent for cam for last 20 years , and i have paid.more or less will be adjested at the end of each calender years.years gone by i had two renewals assuming same c a m charges will be same,and paid that too with each month s rent.

landlord hires management company to run show,suddenly i get invoice for last 3 years c a m arrers,landlord have not provided invoices for that charges,as per lease. last year 07's invoices are there but 80% are paid by center's anchors store,only few/20% paid by landlord. so looks strange and not standerds with accounting practice.

please what should be done? its small business and adds up to big amounts to pay, for all these years.

please guide if need more info. pl ask.

Answer
Al-

As I understand your problem with CAM charges, there have been questionable changes - including revised arrears billings - in the landlord's billing procedures to you and I assume to other tenants in your commercial center.  

CAM billings are a very complicated to understand because they involve so many different records, certain management procedures and accounting standards and because the wording of the text in every tenant's lease can create a very different result in the invoicing amount with a change of select words.  For this reason, it is important that your question be as narrowly focused and precise as possible.

In your 2nd paragraph you partially indicate several actions that the management company or your landlord have taken regarding the CAM charges you have received, however there is not enough related related material to allow me to provide you with assistance.

Please send me a follow-up question that includes the DETAILS of the CAM terms in your lease, a summary of the billing materials your have received and more contextual facts about the bills and the actions of the parties.

Perhaps you have another business friend or know an attorney who could either help you with this or explain your question more clearly to me.  

Often, CAM billing problems related to arrears billings are greatly involved with the specific Landlord & Tenant laws applicable in your area, so it may be wise to contact your closest American Bar Association office and ask if they have any attorneys in their association that provide Pro Bono legal services for the Landlord & Tenant problems you are having with your CAM charges.  If they do, you will find that the attorney will be able to straighten out this complicated billing problem.

If not, send me a follow-up question and I will do my best to help you with this situation.

Good Luck.

-Jim

Commercial Real Estate Investment

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Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.

Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.

Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".

Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.

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