How often CAM charges are reconciled between estimated and actual amounts.
Also known as: CAM reconciliation period, operating expense reconciliation, annual reconciliation
By Angel Campa, Founder · Updated March 2026
Reconciliation frequency determines how quickly the tenant learns whether they overpaid or underpaid CAM charges. Without a defined frequency, landlords can delay reconciliation indefinitely, depriving tenants of credits for years. Annual reconciliation is standard, but the lease should also specify a deadline for delivering the reconciliation statement -- otherwise the landlord's delay effectively shortens the tenant's audit window.
Found in the "Operating Expenses" or "CAM Reconciliation" section. Look for language about "annual adjustment," "year-end reconciliation," or "true-up" of estimated vs. actual expenses. The delivery deadline for the reconciliation statement is often in the same paragraph.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the reconciliation frequency from your lease PDF. The AI searches for the field name and common aliases like "CAM reconciliation period", "operating expense reconciliation" 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.
Lextract automatically checks this field against its 15-rule red flag engine. Issues detected for reconciliation frequency:
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.
Annual reconciliation is the market standard. The landlord should deliver the reconciliation statement within 90 to 120 days after each calendar year ends. Some leases allow 180 days, but shorter deadlines are better for tenants.
Some well-drafted leases include a "deemed approval" clause: if the landlord fails to deliver reconciliation within the specified period, the estimates are deemed final, and the tenant owes nothing further. Without such language, the tenant's obligation may remain open indefinitely.
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