Monday, May 20, 2013
Common Area Maintenance or “CAM” is a provision found in almost every commercial lease. Typically, Landlords require tenants to pay a portion of CAM fees. There are two basic calculations for CAM fees: (1) Variable CAM fees, in which the amount a tenant is required to contribute increases based on a number of factors; and (2) flat CAM fees where the fees are a fixed amount. CAM fees can be complicated, expensive, and include a wide range of expenses such as repairs, insurance, property maintenance, and in some instances, salaries of administrative staff who operate a business park.