Uhh.

So, it is my least favorite time of year at PJP. And you would think that would be Thanksgiving or Christmas, or even much maligned month of January, right? But no - it is actually the time of year when our annual assessments arrive from our landlord. Good times.

If you aren’t familiar with commercial leasing, it generally works like this: you pay a monthly rent charge, but then also pay a monthly Common Area Maintenance (CAM) charge. This is to cover the landscaping, the snow removal, the electricity for the parking lot lights, and even the insurance on the buildings - and so much more. We pay a specific amount a month and it is based on a projection of those costs, plus a mathematical black hole based on our share of the shopping center space based on our square footage and also our days of occupancy. WHEW.

Here’s the worst part though - we pay our rent and CAM charges each month. But that monthly CAM charge is a projection by the landlord of what everything is likely going to cost. And at the end of the year, if there isn’t enough in the fund to cover the expenses, then WE ALL GET TO PAY MORE. Awesome.

There’s never a way to know whether we will owe more or not at the end of the year, but if you want to start a list of why small businesses in America really struggle in their earliest years, consider this a top contributing factor. In our second year at PJP Buttonwood, we received an $800 CAM shortage assessment and at the time, $800 might as well have $8,000. I still remember how stressful that was. And I promise you that The Kroenke Group does not practice patience when it comes to this CAM shortfall. (Though, there are a lot of reasons that Stan Kroenke is a billionaire and I’m not.)

When our CAM bills arrive, they include a full breakdown of costs in a spreadsheet that must take literally forever to create. $101,393 for asphalt repairs? Hmmm.. $23,892 for sweeping? Uhh. Thousands for a security I’ve never seen at Shoppes at Stadium? I don’t know. $9k-ish for a security line? Who does it call? Where is it located? We had an employee whose car was hit in the parking lot TWICE last month with no note left…can the security line help with that? Oh, and what about the Christmas lights that stay on the buildings all year that we apparently paid $3832 for? Was that for one guy to go and flip the switch on November 1st? I guess there is that cheerful aspect.

In the end, PJP West owes no money this year because we had a low occupancy rate (we received occupancy on September 22 of last year). But PJP Nifong owes just under $3,000 and that breaks my heart - and the bank. There’s been a container of half eaten cheese and grapes on the sidewalk for four days at Nifong because that must not fall under maintenance work? Or there’s a homeless camp in the woods behind our building, does that get covered under security? But at least I know our holiday lights will get turned on at the appropriate time.