Common Area Maintenance (CAM)

Common Area Maintenance (CAM) refers to the expenses charged to tenants in a commercial or industrial property to cover the operating costs and upkeep of shared or communal spaces. These areas typically include parking lots, loading docks, lobbies, hallways, landscaping, security services, lighting, and general repairs for common infrastructure. CAM charges are a key component of net lease agreements, often structured as triple net (NNN) leases, where tenants pay a proportionate share of these expenses in addition to base rent and property taxes. The calculation of CAM fees involves allocating the total maintenance costs based on tenant-occupied square footage or another agreed metric. For industrial real estate, precise CAM allocations are critical due to the extensive shared facilities necessary for logistics and warehouse operations. Transparency in CAM charges, clear contractual definitions, and detailed reconciliation statements are essential to maintain landlord-tenant trust and optimize operational budgets. For B2B decision-makers such as investors, asset managers, and logistics professionals, understanding CAM charges is fundamental when assessing the total occupancy cost and the financial performance of a commercial property asset.