1. Agenda RE Calculations 101 Determining PRS/Bldg Denominator
Monthly Rent CAM/RET Estimates
Gross Ups
CAM/RET Reconciliations
Caps – Controllable/Uncontrollable
Net Operating Income

2. RE Calculations 101
Lease Types
NET Lease
Rental Rate $12.00, plus CAM/INS $6.31, & RET $2.80
Gross Lease
One Rate $21.00 PSF
Modified Gross – includes a Base Year for CAM or RET

3. Determining PRS/Bldg Denominator
RE Calculations 101
Determining PRS/Bldg Denominator
PRS = Size Suite/Bldg Rentable SF
Building Denominator = Total Building RSF
PRS can change if building is remeasured
Useable SF
Loss Factor

4. Determining Monthly Rent/CAM/RET
RE Calculations 101
Determining Monthly Rent/CAM/RET
PSF rate is determined by quoted market rate (negotiated directly in the lease)
PSF x Size Suite / 12 = Monthly Rental Rate
% Increase
CPI Increase
Budgeted CAM/TAX For building (PSF x denominator)

5. RE Calculations 101 Determine PRS for your suite
What is the Annual Budgeted CAM & TAX Expenses?

6. RE Calculations 101

7. Determine CAM & TAX monthly estimates for your suite
RE Calculations 101
Determine CAM & TAX monthly estimates for your suite

8. RE Calculations 101

9. Gross Ups RE Calculations 101
Costs that vary with occupancy are grossed up
Usually only in Office Leases
Normally see 100% or 95% Gross Up Allowance

10. Gross Ups RE Calculations 101 Expenses that are normally grossed up:
Janitorial Contract
Cleaning Supplies
Water (possible other utilities i.e. electric)
Trash
Management Fees

11. RE Calculations 101

12. RE Calculations 101

13. RE Calculations 101

14. RE Calculations 101

15. RE Calculations 101

16. CAM & RET Reconciliations
RE Calculations 101
CAM & RET Reconciliations
CAM means Common Area Maintenance (any expense for the common good of all tenants is considered a CAM expense)
Total CAM Cost to run Building $535,650
Divided by Size Bldg (91,844 sf) = $5.83PSF
At Year End actual costs are determined then a reconciliation must be completed no later than 3/31

17. Determine CAM & TAX Year End Costs for your suite
RE Calculations 101
Determine CAM & TAX Year End Costs for your suite

18. RE Calculations 101

19. RE Calculations 101 Fill out 2016 CAM & TAX Escrows
Billed to Tenant for your suite

20. RE Calculations 101

21. What is the 2016 CAM & TAX Reconciliation Amount Due
RE Calculations 101
What is the 2016 CAM & TAX Reconciliation Amount Due

22. RE Calculations 101

23. RE Calculations 101
CAM CAPS
A CAP is a stated maximum amount that LL can charge a tenant for CAM and/or RET (usually a percentage over previous year’s CAM expense)
Controllable/ Uncontrollable Expenses
CAP usually excludes uncontrollable expenses (snow removal, insurance, utility expenses or others expenses defined in the lease)

24. RE Calculations 101
Net Operating Income

25. RE Calculations 101
Questions?