Secondary tool
TMI recovery calculator
Is the additional rent you were billed the additional rent the lease allows?
Rebuild it from the building's recoverable cost: gross up only the variable portion, add the management fee, divide by leasable area, then apply your cap. The gap between that figure and the invoice is your negotiation.
01Your building
Only variable costs should be grossed up.
0 for no cap.
Your additional rent
$11.24/sf/yr
$112,412 per year
Pro-rata share
8.33%
Calculated on leasable area
Gross-up uplift
$84,706
Cost added by restating to the stated occupancy
Cap saving this year
$0
The cap is not binding this year
| Stated recoverable cost | $1,200,000 |
| Grossed up to 85% occupancy | $1,284,706 |
| Management fee at 5% | $64,235 |
| Recoverable pool | $1,348,941 |
| Rate before cap | $11.24/sf/yr |
| Rate after cap | $11.24/sf/yr |
02How it is calculated
The published method
- Fixed costs pass through unchanged; the variable share is divided by the occupancy assumption.
- The management fee is applied to the grossed-up cost, not the raw cost.
- Pro-rata share is your area over total leasable area.
- The cap ceiling is the prior-year recovered rate grown by the cap percentage; the lower of the two rates bills.
How these figures were produced
- Modelled — Derived arithmetically from observed inputs using the published method; not a market quote.
Read the clause explainer: how a TMI gross-up works and what a CAM cap actually protects.
03Questions
Frequently asked
What does a gross-up clause do to my bill?
It restates variable operating costs as if the building were full, so your share reflects the cost of serving occupied space rather than being diluted by vacancy. It should never apply to realty taxes or insurance.
Is pro-rata share based on occupied or leasable area?
Standard drafting uses total leasable area, which is why the gross-up exists. A share calculated on leased area shifts vacancy cost to sitting tenants and should be negotiated out.
Why is a management fee charged on recoveries?
Most leases permit a fee of 3-5% on operating costs, sometimes on gross revenue instead. Confirm the base — a fee on gross revenue is materially larger than the same percentage on operating cost.
Not advice — Leaselor is a data publisher. We do not broker, arrange, or transact, and nothing here is an offer or professional advice. Figures are indicative benchmarks for comparison and must be confirmed with a licensed professional before you rely on them. About Leaselor