CAM, or Common Area Maintenance, refers to the additional fees tenants pay on top of base rent to cover the upkeep of shared spaces in a commercial property. These areas often include lobbies, hallways, elevators, restrooms, parking lots, landscaping, and security. CAM charges are common in retail centers, office buildings, and multi-tenant industrial parks where multiple businesses occupy a single property.
CAM expenses are usually prorated based on the square footage a tenant occupies relative to the total leasable space. For example, if a tenant leases 10 percent of a shopping center, they may be responsible for 10 percent of the property’s common area maintenance costs. These charges help ensure that shared spaces are clean, safe, and functional for all tenants and their customers or clients.
Commercial leases may include CAM as part of a triple net lease, where tenants pay base rent plus taxes, insurance, and maintenance. Alternatively, in modified gross leases or full-service leases, CAM charges may be bundled into the total rent or partially passed through based on negotiated terms. Understanding how CAM fees are calculated and what they cover is essential for budgeting and negotiating lease agreements.
Tenants should always review the lease agreement for details about CAM reconciliations, caps, and exclusions. Some landlords include management fees, capital improvements, or administrative overhead in CAM, while others limit it to direct maintenance costs. Clarifying these terms upfront can prevent disputes and ensure transparency.
Contact Berger Commercial Realty for expert lease analysis and representation.