CAM Charges Explained — What Commercial Tenants Actually Pay

What Are CAM Charges?

CAM charges cover the cost of maintaining shared areas of a commercial property. In retail centers and office buildings, this may include parking lot repairs, snow removal, landscaping, janitorial services, lighting, and security.

In many leases — especially triple net (NNN) leases — CAM charges are billed separately from base rent and reconciled annually through CAM reconciliation.

If you're unsure how CAM differs from broader NNN expense structures, review our CAM vs NNN comparison guide.

What Is Typically Included in CAM Charges?

• Landscaping and grounds maintenance
• Parking lot repairs and striping
• Snow removal
• Exterior lighting and utilities
• Security services
• Property management or administrative fees

However, not all expenses are automatically allowed. Whether a charge is valid depends on how the lease defines allowable CAM expenses and whether caps or exclusions apply. Many of these limits are outlined in Common Area Maintenance (CAM) provisions and detailed further in lease CAM language.

How CAM Charges Are Calculated

CAM charges are typically allocated based on a tenant’s pro-rata share of the building or center. If your lease states you occupy 10% of the total square footage, you may be responsible for 10% of CAM expenses.

Errors can occur when square footage is miscalculated, vacant space is improperly allocated, or administrative fees exceed lease-defined limits.

Common CAM Overcharges

• Admin or management fees exceeding caps
• Capital improvements billed as operating expenses
• Improper allocation of vacant units
• Duplicate charges across CAM and NNN categories
• Non-allowable expenses passed through

These types of errors are frequently discovered during CAM reconciliation error reviews and often relate to improper allocation, vague lease drafting, or expenses that exceed negotiated caps.

Why CAM Charges Matter Financially

Even small CAM allocation errors can cost tenants $5,000–$50,000+ annually. Because CAM charges recur every year, unnoticed errors compound over time.

Most leases also include strict audit window deadlines, which limit how long tenants have to dispute incorrect charges. Missing that deadline can permanently waive your right to challenge CAM overcharges.