CAM in Commercial Real Estate — What Tenants Need to Know

What Is CAM in Commercial Real Estate?

CAM in commercial real estate refers to the shared operating expenses of maintaining common areas in a property — such as parking lots, hallways, landscaping, lighting, security, and general property upkeep.

These expenses are typically passed through to tenants in addition to base rent, especially in triple net (NNN) leases.

While CAM charges are standard in commercial leases, the way they are calculated and allocated varies — and that’s where errors often occur.

What Do CAM Charges Typically Include?

• Landscaping and exterior maintenance
• Snow removal and parking lot repairs
• Lighting and utilities for common areas
• Security services
• Property management fees

Some leases also include administrative markups or management fees on top of direct expenses. These fees are frequently misunderstood and sometimes exceed lease-defined caps.

Where CAM Problems Arise in Commercial Real Estate

CAM disputes in commercial real estate often stem from allocation errors, vague lease language, or improper expense pass-throughs.

• Charges allocated using incorrect square footage
• Capital improvements treated as operating expenses
• Administrative fees applied beyond lease limits
• Duplicate billing across CAM and tax categories

These issues are typically discovered during CAM reconciliation — often within a limited audit window.

Why This Matters Financially

Even small CAM allocation errors can cost tenants $5,000–$50,000+ annually depending on property size and lease structure.

Because CAM charges recur every year, unnoticed errors compound over time. Reviewing your lease before audit windows close preserves leverage and protects cash flow.