Who is typically responsible for Common Area Maintenance (CAM) charges?

The responsibility for Common Area Maintenance (CAM) charges typically falls on office, retail, and warehouse tenants, as well as condominium owners. CAM charges are fees that cover the costs associated with the upkeep and maintenance of shared spaces in a property, such as lobbies, parking lots, landscaping, and other communal facilities.

In commercial real estate, these charges are often outlined in lease agreements, where tenants agree to pay their fair share of the maintenance costs to support amenities that all tenants benefit from. For instance, in a shopping center, the retail tenants collectively share the costs associated with cleaning, security, and repairs of the common areas, ensuring that the property remains attractive and functional for both the tenants and their customers.

Understanding this framework is crucial for tenants, as it allows them to anticipate additional monthly costs beyond their base rent. Proper communication and clear terms in lease agreements pertaining to CAM can help in avoiding disputes and ensuring that all parties understand their financial responsibilities in relation to the common areas.