Common Area Maintenance (CAM) Tenant Charge

Context:
- It can (typically) be billed on top of the Commercial Lease Base Rent.
- It can (typically) be a point of negotiation between landlords and tenants, with the specifics detailed in the lease agreement.
- It can (typically) be calculated based on the tenant's pro rata share of the total square footage of the property.
- It can (typically) be referenced in a CAM Clause.
- It can (often) include expenses for services like janitorial services, snow removal, landscaping, and security.
- It can (often) vary from year to year based on the actual maintenance costs incurred.
- It can (often) include administrative fees charged by the landlord to manage these services.
- It can ensure that the upkeep of shared spaces, such as lobbies, parking lots, and elevators, is collectively funded by the tenants, thus maintaining the quality and value of the property.
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Example(s):
- A shopping mall CAM charges to contribute to the cost of cleaning common areas, security, and parking lot maintenance.
- Office building tenants might pay CAM charges for lobby maintenance, elevator repair and maintenance, and landscaping of the property grounds.
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Counter-Example(s):
- A Landlord-Paid Operating Expense.

See: Triple Net Lease, Food Court, Triple Net Lease, Commercial Property, Common Area, Pro Rata, Square Footage, Shopping Mall.

References

(Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Common_area_maintenance_charges Retrieved:2024-3-26.
- Common area maintenance charges (CAM) are one of the net charges billed to tenants in a commercial triple net (NNN) lease, and are paid by tenants to the landlord of a commercial property. A CAM charge is an additional rent, charged on top of base rent, and is mainly composed of maintenance fees for work performed on the common area of a property
  Each tenant pays their pro rata share of a property's total CAM charges, which prorated share is the percentage of the tenant's rented square footage of the total, rentable square footage of the property.
  A common example of a CAM item is the cost of cleaning the walkways in a shopping mall. It is assumed that every tenant benefits from a clean environment, and should share in that cost. An example of a CAM that is charged to only a subset of tenants might be the charges for cleaning the food court area, where all of the vendors in the court collectively cover the higher cost of cleaning the tables on a frequent schedule.