Specifies whether the CAM cap is cumulative and compounding or non-cumulative.
By Angel Campa, Founder · Updated March 2026
A cumulative cap compounds year over year, allowing the landlord to "bank" unused increases. If actual costs rise 2% in year one but the cap is 5%, the landlord can pass through up to 8% in year two (5% + the unused 3%). A non-cumulative cap resets each year, limiting increases to exactly the cap percentage annually. Over a 10-year lease, the cumulative structure can cost a tenant 15-25% more in total CAM charges.
Found in the CAM or Operating Expenses section alongside the CAM cap percentage. Look for specific language about whether unused cap amounts "carry forward" or "accumulate." Sometimes described as "compounding" vs. "non-compounding."
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the cam cap type from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Lextract automatically checks this field against its 15-rule red flag engine. Issues detected for cam cap type:
Lease Structure
The categorization of expense sharing.
Pro Rata Share
The tenant's fractional responsibility for total building operating expenses.
Base Year
The foundational year used to calculate operating expense increases in gross leases.
CAM Cap %
The maximum allowable annual increase for controllable operating expenses.
Gross-Up %
The assumed occupancy level used to extrapolate variable operating expenses.
Management Fee Cap
The maximum allowable percentage of gross revenues charged for property management.
A non-cumulative cap limits each year's increase independently (e.g., max 5% per year regardless of prior years). A cumulative cap allows the landlord to carry forward unused increases, so if costs only rose 2% one year, the landlord can pass through up to 8% the next year (5% + 3% carryover).
Non-cumulative caps are significantly more protective for tenants because they prevent the landlord from banking unused increases. With cumulative caps, a single year of low increases can lead to a large spike in the following year.
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