What is the common area maintenance (CAM) charge?

Common Area Maintenance (CAM) charges are the fees that commercial tenants pay to the landlord for their proportionate share of the costs of maintaining and operating the building's common areas including lobbies, corridors, elevators, parking areas, landscaping, security, and building management services.

What CAM Typically Covers

• Security and housekeeping staff.
• Lift maintenance and contracts.
• Common area lighting and utilities.
• Landscaping and external maintenance.
• Building management fee.
• Insurance on common areas.

How CAM Is Calculated

CAM is charged proportionately based on the tenant's share of total leasable area: CAM/month = (Tenant's NLA ÷ Total Building NLA) × Total Monthly CAM Expenses.

CAM charges can significantly increase the effective occupancy cost often adding 15–25% on top of base rent in Grade A buildings. Tenants should request a detailed CAM reconciliation statement annually and negotiate a CAM cap in their lease to limit exposure to escalating building operating costs.