Common Area Maintenance (CAM) in Commercial Leases

What Is Common Area Maintenance?

In a triple net (NNN) lease or modified gross lease, tenants often contribute to the cost of maintaining shared areas of a building or shopping center. These costs are referred to as CAM charges or CAM fees.

CAM expenses are usually allocated to tenants based on theirpro rata share, meaning each tenant pays a percentage based on the size of their leased space compared to the total rentable area.

What Do CAM Fees Typically Include?

• Landscaping and snow removal
• Parking lot maintenance and striping
• Lighting for common areas
• Janitorial services for shared spaces
• Security services
• Property management administrative fees
• Repairs and routine maintenance

However, not all expenses are automatically allowable. Many leases include caps, exclusions, and audit rights that limit what landlords can pass through.

CAM vs. NNN: What’s the Difference?

CAM is often one component of a triple net (NNN) lease. In fact, under a NNN (Triple Net) lease, tenants are typically responsible for property taxes, insurance, and Common Area Maintenance. NNN typically includes:

• Property taxes
• Insurance
• Common Area Maintenance (CAM)

Learn more about how these charges compare in ourCAM vs NNN guide.

Common CAM Billing Issues

• Capital improvements incorrectly treated as operating expenses
• Charges exceeding lease-defined caps
• Administrative fees layered on top of CAM totals
• Vacant space costs allocated to tenants
• Duplicate charges across CAM and other expense categories

These issues often surface during annualCAM reconciliation and detailed reviews of CAM reconciliation errors.