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Commercial NNN Lease Abstract and CAM Reconciliation Reviewer: Pro Rata Share Denominator, Expense Exclusions, Controllable CAM Cap, Admin Fee Limits, Audit Deadline, and a Tenant Dispute Letter
Check a landlord's year end CAM, tax, and insurance reconciliation against the actual lease: abstract the clauses that control the bill, recompute the tenant's pro rata share, strip excluded expenses, apply the controllable CAM cap and admin fee limit, compare the corrected total to estimates paid, and draft a dispute letter before the audit window closes.
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Prompt
Act as a commercial lease administrator who abstracts retail and office NNN leases and audits year end CAM reconciliations for tenants, and who knows that most overcharges come from the wrong denominator, capital items in the pool, and caps that were never applied. Inputs: - Lease clauses that control operating expenses, quoted: definitions of Operating Expenses or CAM, exclusions, pro rata share and its denominator, caps, admin or management fee, gross up, audit rights: [LeaseExcerpts] - Tenant premises area and the building or center area as the lease defines it: [PremisesAndBuildingArea] - The landlord's reconciliation statement line by line, including the share percentage used: [ReconciliationStatement] - Monthly estimates the tenant paid for the year: [EstimatesPaid] - Prior year controllable expense base, if a cap applies: [PriorYearBase] - Date the statement was received and the lease year it covers: [StatementDates] - Output format: [Format] Generate: 1. A lease abstract table limited to the operating expense provisions: each clause, the lease section, and a plain reading. 2. Pro rata share check: the percentage the lease produces from PremisesAndBuildingArea next to the percentage in ReconciliationStatement, and whether the landlord used occupied area when the lease says leasable area, or excluded anchors the lease does not exclude. 3. An expense review: each line marked allowed, excluded, or needs backup, citing the exclusion (capital expenditures unless the lease allows amortization, leasing commissions, landlord financing costs, items reimbursed by insurance). For allowed capital items, show the amortized annual amount and the useful life assumption. 4. Cap math: split controllable and uncontrollable expenses as the lease defines them, apply the cap (cumulative or non cumulative, compounding or not) to PriorYearBase, and show the allowed amount. 5. Admin or management fee: recompute on the base the lease allows and at the lease rate. 6. Gross up, only if the lease contains a gross up clause: how variable expenses would be adjusted and whether that changes the tenant share. 7. A corrected reconciliation: tenant share of CAM, taxes, and insurance, minus EstimatesPaid, giving the true balance or credit, next to the landlord's number. 8. Audit window: the deadline computed from StatementDates and the notice requirements in the lease. 9. A dispute letter to the landlord or property manager citing sections, the corrected numbers, the documents requested, and a reservation of audit rights. Constraints: - Use only the lease language provided. Where the lease is silent or ambiguous, say so and mark NEEDS COUNSEL rather than assuming. - This is not legal advice. Do not advise withholding rent. - Show every calculation so the numbers can be checked. No em dashes.
Instructions
Replace every [bracket] with your details before running. Works on ChatGPT, Claude, and Gemini.
Generated Output
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Examples
Example Input
LeaseExcerpts: Sec 6.1 Tenant's Pro Rata Share = Premises RSF divided by total leasable square footage of the Shopping Center, whether or not leased. Sec 6.3 excludes capital expenditures, except the annual amortized cost of capital replacements over their useful life; excludes leasing commissions. Sec 6.4 Controllable CAM may not increase more than 5 percent over the prior year's Controllable CAM, non cumulative; snow removal, utilities, taxes, insurance are not controllable. Sec 6.5 administrative fee 10 percent of CAM, excluding taxes and insurance. Sec 6.8 Tenant may audit within 120 days after receipt of the annual statement. PremisesAndBuildingArea: 2,400 RSF; center 48,000 SF leasable ReconciliationStatement: 2025 CAM: landscaping 18,000; snow removal 22,000; sweeping 9,600; repairs and maintenance 41,400; parking lot repaving 60,000; security 14,000; leasing commissions 12,000; total 177,000. Admin fee 15 percent 26,550. Taxes 96,000. Insurance 30,000. Share used 6.00 percent (2,400 / 40,000 occupied). Balance due 3,573.00 EstimatesPaid: 12 x 1,350 = 16,200 PriorYearBase: 2024 controllable CAM 78,000 StatementDates: received September 15, 2026, covers calendar 2025 Format: tables and letter
Example Output
Abstract (operating expenses) | Clause | Sec | Reading | | Pro rata share | 6.1 | Denominator is all leasable SF, leased or not: 48,000 | | Exclusions | 6.3 | No capital items except annual amortization; no leasing commissions | | Controllable cap | 6.4 | 5% over prior year controllable, non cumulative; snow excluded from cap | | Admin fee | 6.5 | 10% of CAM only | | Audit | 6.8 | 120 days from receipt | | Gross up | none | Not in excerpts, do not apply | Pro rata share Lease: 2,400 / 48,000 = 5.00%. Statement: 6.00% using occupied area. Sec 6.1 says 'whether or not leased', so 5.00% applies. Expense review | Line | Amount | Status | | Landscaping | 18,000 | Allowed, controllable | | Snow removal | 22,000 | Allowed, uncontrollable | | Sweeping | 9,600 | Allowed, controllable | | Repairs and maintenance | 41,400 | Allowed, needs backup | | Parking lot repaving | 60,000 | Capital. Allowed only as amortization: 60,000 / 15 years = 4,000. Useful life assumed, request landlord's schedule | | Security | 14,000 | Allowed, controllable | | Leasing commissions | 12,000 | Excluded, Sec 6.3 | Cap math Controllable 2025: 18,000 + 9,600 + 41,400 + 14,000 + 4,000 = 87,000 Cap: 78,000 x 1.05 = 81,900. Allowed controllable: 81,900 Treating amortized repaving as controllable is an assumption; Sec 6.4 does not list it. NEEDS COUNSEL if disputed. Allowed CAM: 81,900 + 22,000 snow = 103,900 Admin fee 10% x 103,900 = 10,390 (statement charged 15% on a larger base: 26,550) Corrected reconciliation | Item | Landlord | Corrected | | CAM plus admin | 203,550 x 6% = 12,213.00 | 114,290 x 5% = 5,714.50 | | Taxes | 96,000 x 6% = 5,760.00 | 96,000 x 5% = 4,800.00 | | Insurance | 30,000 x 6% = 1,800.00 | 30,000 x 5% = 1,500.00 | | Total share | 19,773.00 | 12,014.50 | | Less estimates | 16,200.00 | 16,200.00 | | Balance | 3,573.00 due | 4,185.50 credit to tenant | Difference: 7,758.50 Audit window Received September 15, 2026 + 120 days = January 13, 2027. Send notice well before; Sec 6.8 excerpt does not state a notice form, CHECK the full lease. Dispute letter Re: 2025 Operating Expense Reconciliation, Suite 104 We received the 2025 reconciliation on September 15, 2026 and dispute the balance of $3,573.00 for these reasons: 1. Sec 6.1 sets our share at 5.00% (2,400 / 48,000 leasable SF, whether or not leased), not 6.00%. 2. Sec 6.3 excludes the $12,000 leasing commissions and limits the $60,000 repaving to its annual amortized cost. 3. Sec 6.4 caps controllable CAM at $81,900 (5% over 2024's $78,000). 4. Sec 6.5 limits the administrative fee to 10% of CAM. On these terms our share is $12,014.50 against $16,200.00 paid, a credit of $4,185.50. Please provide the general ledger, invoices over $5,000, the repaving contract and depreciation schedule, and the 2024 controllable CAM detail. We reserve our audit rights under Sec 6.8.