Commercial Real Estate Investment/disputed cam charges for 2008

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Expert: - 5/4/2011


Question
Dear Jim,

The business I have reference to is in Illinois. At the present time (2011), the  plaza owners are seeking cam (common area maintenance) charges claimed to have been incurred in 2008 ($1,877.14). The cam charges for 2009 were $370.25; for 2007, approximately the same amount? Do you agree that the charge for 2008 is excessive? Is there a statute of limitations applicable? Also, when I have, in fact, complied in November 2010 with the court order requesting the sum of $735.00 ($500 for lawyers fees and $235 court costs, can they come back and charge me $2,000.00 for additional lawyers fees (after the judgment was satisfied?

Answer
Mary:

The best overall answer to your questions is to ask the landlord for the specific supporting documents to review, that is, ask to review the actual paid invoices - especially those that verify the increased 2008 costs - as well as the legal bills, etc. for each type of expense the landlord is requesting.

I do not know if your area in Illinois has in their landlord/tenant law a time limitation on how long a landlord can wait to bill its' tenants for past CAM expenses.  Some areas have a time limitation and other jurisdictions do not.  Ask this question of any local attorney that specializes in landlord/tenant law.   They will know off the top of his/her head.

If the landlord refuses to share the applicable supporting documents, expect that there is a problem somewhere with the validity of the charges.   At that point you will likely need to have an attorney assist you with pursuing more discovery regarding the documents that verify the landlord's charges.

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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