Case Study

Large TV Studio Recoups $1.4 Million from Tenant After CAM Reconciliation by DLC

Before DLC:

  • Lack of in-house expertise for CAM reconciliation  

After DLC:

  • Reliable, accurate, fast CAM reconciliation process 
  • Staff knowledge for future CAM reconciliations 
  • Recouped $1.4 million from tenant 




The client – a large movie and television studio – entered a new business venture of commercial real estate leasing arrangements with a production and distribution studio. As the client was now taking on the role of a landlord, they needed to provide their tenant with a Common Area Maintenance (CAM) reconciliation statement to ensure the tenant contributes its fair share of expenses related to common areas of the property and engaged DLC to design and create the process. 

Project Background 

At the start of the year, the client estimated annual CAM expenses based on budgeted expenses for the year and then billed the tenant for CAM reimbursements monthly. At the end of the year, the client prepared a CAM reconciliation that compared the CAM billings for the year to the actual CAM expenses. If the actual expenses are higher than the estimated payments, the tenant is required to pay the difference to the client. If actual expenses are lower, the tenant will receive a refund. 

Due to the complex nature of the CAM process, a lack of in-house technical accounting expertise, and time constraints, the client’s accounting staff was unable to calculate and provide a CAM reconciliation for its fast-upcoming deadline without additional support from a DLC consultant who had already cultivated the necessary expertise earlier in their career. 

DLC Approach  

Working with the client, DLC created a CAM reconciliation, documented the process, and trained the client on the new procedures. DLC also worked to create supporting schedules for pro rata percentage calculations, initial OPEX base year pools, dollars per square foot, and total lot square footage by building. 

Lastly, our consultants also identified CAM expenses, verified tenant payments, reviewed invoices, toured the buildings, and reviewed yearly budgets. 


After engaging DLC, the client had processes in place to ensure the completion of its CAM reconciliations and was able to provide a CAM reconciliation to its tenant on time. As a result, they were able to recover from the tenant $1.4 million in CAM amounts.   

The knowledge of CAM reconciliations is rare and the DLC bench has such knowledge in particular niches that provide the leadership in execution that this scenario (and many others) require. 

Services Provided