Expert: Mike Fortunato - 9/8/2011

Question
I am building an annual budget for an office building.
I seen to be having a problem getting a spreadsheet formula to work wherein I can calculate the monthly CAM income.
I was assuming I could build a formula using occupied square footage multiplied by the square foot costs of recoverable expenses divided by 12 months to get a monthly estimate, This seems way off however. Or on a monthly basis use the monthly recoverable costs divided by the square foot dollar estimate.

Answer
It's difficult for me to determine what may be wrong without seeing the spreadsheet, but your general description sounds correct. Note that the CAM/sf is usually calculated based on the square footage of the ENTIRE property, not just the occupied suites, so perhaps that's where the error is.