Jun
30
what is a cam charge for a commercial lease?
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3 Comments
July 2nd, 2009 at 9:06 am
Don’t know what it stands for but from past experience I am gonna guess that the “M” stands for “Maintenance”??? Anyway it is basically used by the owner to pass on any maintenance expense to ALL the tenants for something that benefits all of them.
I used to work at a restaurant that was part of a strip mall (10 shops) and their CAM charges included stuff like like lawn care, snow removal, parking lot repair, etc.
July 5th, 2009 at 5:54 am
CAM = Common Area Maintenance fee. It is a tenant’s portion of maintaining the common area, including parking lots, landscaping, security, etc.
July 8th, 2009 at 12:17 am
Common Area Maintenance – for the benefit of anyone leasing or customers using the commercial building.
Can include lawn and landscape service, maintenance of elevators, hallways, sitting area benches and fountains, electrical for the parking lot and storefront lights, and the like.
It’s typically charged on a pro rata basis caculated on your square footage, and is shared with all the other commercial tenants that same way.
Does that help?