Commercial real estate (CRE) CAM, or common area maintenance, refers to the expenses related to maintaining common areas within a commercial property. These expenses may include utilities, landscaping, security, and other costs associated with maintaining shared areas of the property. CAM charges are typically passed on to tenants as a part of their lease agreement and are used to cover the cost of maintaining and repairing common areas. CAM charges are usually calculated as a percentage of the tenant’s leased space or as a fixed fee. In some cases, the landlord may be responsible for covering some or all of the CAM expenses. It is important for tenants to carefully review their lease agreement to understand their obligations and responsibilities related to CAM charges.
What’s included in CAM?
Common area maintenance (CAM) charges are fees that landlords charge to tenants to cover the cost of maintaining and repairing common areas of leased property. These areas include lobbies, elevators, hallways, restrooms, and other shared spaces within a building. The purpose of CAM charges is to ensure that the common areas are well-maintained and in good condition for all tenants to use.
CAM charges are typically included in a commercial lease agreement, and the specific costs covered by these charges will depend on the terms of the lease. Some common costs that may be included in CAM charges include:
- Repairs and maintenance: This can include anything from fixing a broken elevator to painting the lobby.
- Utilities: Landlords may include the cost of utilities for common areas in CAM charges.
- Insurance: The cost of insuring common areas may be included in CAM charges.
- Janitorial services: The cost of cleaning and maintaining common areas may be included in CAM charges.
- Landscaping: The cost of maintaining outdoor common areas, such as gardens or parks, may be included in CAM charges.
- Property management fees.
- Administrative expenses.
- City permits.
- Property taxes.
- Property insurance.
- Any other expense a landlord may want to include.
It is important for tenants to understand exactly what is included in their CAM charges, as these costs can significantly impact the overall cost of leasing a property. Tenants should carefully review their lease agreement and ask their landlord for clarification if there are any questions or concerns about CAM charges.
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