Is anyone else seeing lease language block the budget math this cycle? On a 118k SF office, we’ve got 3% rent bumps but a 5% cumulative cap on controllable OPEX while utilities are tracking 8–9%; do you spread the delta in the operating budget or push for midterm lease amendments before Q1 CAM estimates so finance isn’t surprised?
I’d build a suite-level cap bank now and show the carryforward in the Q1 CAM estimate with a one-line “utilities excluded from controllable cap” note. Do your leases already treat utilities as uncontrollable, or are they stuck under the cap? If you negotiate, keep it narrow — add a utility rider tied to actuals or a public index so finance doesn’t get whiplash.
Push a brief utility rider before Q1 CAM: carve out >5% and quarterly true-up, @michael6214, if leases allow.