What is a CAM charge?

CAM stands for common area maintenance. It is a charge passed on by the landlord to the tenant for costs incurred by the landlord for maintaining the common areas of the property. If you go on the internet to review what a cam charge is and how it applies to your lease, you will get different answers. Cam charges are very similar. Typical CAM charges include repairs to the parking lot, common area electric and plumbing costs, roof repairs, maintenance fees, administrative charges and landscaping to name a few.

The way CAM charges are calculated is where you find differences. Usually when you have triple net lease you also have a common area maintenance charge. In the market where I work the cam usually refers to a shopping center leases. It is important that the tenant understand this charge and how it relates to their specific lease. The main points about CAM charges are to be aware that it exists, know how it is calculated and make sure that there is a cap on this charge.

If you have a triple net lease and you are leasing 2,000 square feet and your rent is $1.50 per foot or $18 per foot annualized your rent would be $3000 per month. Your rent would also include a CAM charge. This could be in the range of .15 per foot (1.80 annualized) to .50 per foot. Using the example of .15 per foot your rent would be $3000 per month plus $300 cam (.15×2,000sf). Your total monthly rent would be $3,300.

 

 

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