Understanding Annual Operating Expense Reconciliation (OPEX) and Estimates
Sheryl Mazirow, CCIM ? Commercial Real Estate Broker - Tenant Only
President, CCIM @ Mazirow Commercial, Inc. | Tenant Representation Expert
Tenants can expect their landlords’ annual Operating Expense Reconciliation (OPEX) and estimates to be forthcoming any moment. Operating Expenses are also referred to as Common Area Cost (CAM) in many leases.
One of the most critical items in these statements is ensuring that the accurate Base Year is stated correctly.
The Base Year is the year the lease commences. Any increase in costs for operating the building is “passed-through” to tenants per the pro-rata share of space a tenant occupies.
Learn more in our latest blog post about the importance of getting the Base Year correct and the steps you should take each year.
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