What is the purpose of Common Area Maintenance (CAM) charges?

Common Area Maintenance (CAM) charges are intended to reimburse landlords for the costs associated with maintaining and operating the shared spaces within a commercial property. This includes areas such as lobbies, parking lots, landscaping, hallways, and restrooms that are used collectively by all tenants. By allocating these expenses through CAM charges, landlords ensure that all tenants contribute fairly to the upkeep of the property, which in turn helps maintain its overall appearance and functionality.

These charges typically cover various operational costs, which might include janitorial services, landscaping, snow removal, repairs, utilities for common areas, and property security. Such shared expenses are critical for providing a pleasant environment for both tenants and their customers, thus potentially enhancing tenant satisfaction and retention.

In leveraging this system, landlords are able to create a predictable and fair way to manage the financial aspects of common area upkeep, while tenants enjoy the benefits of well-maintained shared facilities without needing to handle these costs directly.