What does CAM include in a commercial lease?

6 views 3 answers
According to law, what does CAM include and doesn't include?

Attorney Answers

3
Jeff Pham ·
Common area maintenance ("CAM") charges don't always cover the same expenses---it varies from building to building. As the name implies, it's meant to pass along the landlord's expense of maintaining common areas over to the tenant---however, CA law doesn't require CAM expenses to include/exclude certain items. Depending on the building, CAM charges may cleaning/maintenance of hallways, common bathrooms, lobby areas, security, landscaping, snow removal, window cleaning, etc. They may also include property taxes and/or insurance. Again, it all depends on the property and lease in question. Regardless, read the lease carefully to ensure that you fully understand what CAM expenses are being passed along to you, how they're calculated, when they are paid, how much they can increase year over year, and what rights you have to audit if you think you're being overcharged. CAM charges are a significant component of what tenants pay for commercial leases, but are often overlooked. An attorney can assist you in this regard. Best of luck.
0 upvotes
Michael Doland ·
I agree with Mr. Pham, and I recall your questions from a few days ago. Normally, taxes are not included in CAM charges but are described separately. A review of the written lease would provide the best analysis.
0 upvotes
James Eschen ·
If you are already renting, periodically review the statement of CAM charges against the lease. Commercial landlords have been known to demand CAM charges that the lease did not authorize.
0 upvotes