CAM reconciliations are calculated by aggregating all operating expenses associated with the shared areas of a commercial property (such as landscaping, parking lot maintenance, security, insurance, and administrative fees). Each tenant is billed for their proportionate share based on their occupied square footage relative to the building’s total rentable area. Property managers optimize this by implementing energy-efficient building systems, auditing vendor contracts annually, and keeping operational expenses predictable to avoid large, unexpected year-end charges for tenants.