Commercial lease · free guide
CAM charges explained
CAM means common area maintenance. In many retail and office deals it is the variable bill that sits next to base rent.
Tenants who only negotiate base rent often lose the deal on year-two CAM true-ups.
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Before ClausePrep
The broker is friendly and fast. Rent looks fine. You feel behind, like everyone else already knows the game.
After ClausePrep
You can price total occupancy cost, name the traps (CAM, guarantee, HVAC), and negotiate without apologizing for asking.
What to request in writing
- CAM per square foot for the last two to three years.
- A sample reconciliation statement with line items.
- Definition of controllable versus uncontrollable expenses.
- Any cap on controllable CAM and what the cap excludes.
- Your audit rights and the deadline to challenge a reconciliation.
What CAM often includes
Shared lighting, landscaping, parking lot upkeep, property management fees, security, and sometimes insurance or taxes depending on lease type.
NNN leases push more of these costs to tenants. Gross leases fold more into rent. Modified gross sits in between. Labels matter less than the definitions.
How tenants get surprised
Management fees calculated on a high base, capital projects dumped into CAM, and exclusions that gut a so-called cap.
Ask whether capital improvements are amortized and over how many years.
Free sample for this situation
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Questions
Can I refuse to pay CAM?
Not if you signed a lease that requires it. Your power is before signature: definitions, caps, audit rights, and history.
Is a CAM cap standard?
Not automatic, but common enough to request. Landlords often accept caps on controllable expenses with listed exclusions.
Educational content only. ClausePrep is not a law firm and does not provide legal advice. For material decisions, consult a licensed professional in your jurisdiction.