Defines which CAM expenses are subject to the cap (controllable) vs excluded from the cap such as taxes, insurance, and utilities (non-controllable).
Also known as: controllable expenses, non-controllable expenses, cap exclusions, expense cap carveouts
By Angel Campa, Founder · Updated March 2026
The distinction between controllable and non-controllable expenses determines the real value of a CAM cap. If real estate taxes, insurance, and utilities are classified as non-controllable, they can increase without limit even when a cap exists. In many markets, taxes and insurance alone represent 40-50% of total operating expenses, meaning the cap may only protect against half of the tenant's exposure.
Found in the "Operating Expenses" or "CAM Cap" section, usually following the cap percentage definition. Look for a list of expenses that are "excluded from the cap" or "not subject to the annual limitation."
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the controllable vs non-controllable expenses from your lease PDF. The AI searches for the field name and common aliases like "controllable expenses", "non-controllable expenses" across 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.
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.
CAM Cap Type
Specifies whether the CAM cap is cumulative and compounding or non-cumulative.
Gross-Up %
The assumed occupancy level used to extrapolate variable operating expenses.
Real estate taxes, property insurance premiums, utilities, and snow/ice removal are commonly classified as non-controllable expenses excluded from the CAM cap. Some leases also exclude government-mandated expenses and force majeure costs.
It is possible but rare. Landlords argue these costs are outside their control and should not be subject to a cap. Tenants can sometimes negotiate a separate cap for taxes and insurance (e.g., 8-10% per year) to provide some protection against extreme increases.
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