Common Area Maintenance (CAM) in Commercial Real Estate

Article of the week

Jean Murray (The Balance): What Is Common Area Maintenance (CAM)?

Core Ideas

1) Definition: The gross (rentable) building area of multi-tenant commercial properties consists of usable space dedicated to one tenant and common space shared by all tenants. The common space includes lobbies, hallways, staircases, elevators, escalators, shared restrooms, parking lots, walkways and landscaping.

2) Expenses: Common area maintenance (CAM) fees cover operating, maintenance and repair costs. Operating costs include utilities (electricity, gas, water, sewage), cleaning, bathroom supplies, landscaping (mowing, weed removal, irrigation, fertilizing, shrub & tree trimming), winter service (snow removal, salting), security systems and personnel.

3) Payment: Depending on the lease type, CAM costs are borne by the tenant, landlord or both.