Expert: Peter Liebert, SIOR - 12/29/2007

Question
We have been leased this commercial property space of 1548 sq ft for $27/sq ft for one year since Jan 07 that has the CAM charge of around $7.36/sqft which equivalent to $950/per month.  Recently we received from the Landlord's property management letter that the CAM charge for 2008 estimates were increase from $950 to $2035.69 per month which is 114% increase from the previous year.  Does the CAM charge increase reasonable? What are % normally the CAM would be increase year by year? Please provide us the advises.


Thank you for your time
Tony  

Answer
If the CAM charge provision in the lease did not have a "ceiling" or "cap" for any annual increase, or, a provision that you would be provided the ability to audit the basis for any increase, you may not be able to contest the increase. You should have had an attorney review the lease before signing it.