What Is Common Area Maintenance?

CAM, how much does is cost and why am I being asked to pay it? What doers it cover? Shouldn't the landlord cover it?

Common area maintenance (CAM) is the cost your business pays for the areas in a commercial building common to all tenants. Look at it this way: When you lease a commercial building, you are paying for two separate areas, the usable area, and the common area.

Usable Area

Usable area is the space you are leasing, meaning the square footage in a building that you specifically use as a tenant. This area can include restrooms within the space, closets, break rooms, and a reception area, in addition to individual offices or other facilities your business needs.

Common Area Common building areas are outside your leased space but available to you and other tenants. These areas include common restrooms, lobbies, walkways, parking lots, and landscaping. The common area in a multi-story building might include elevators, electrical rooms, and public corridors.

Sometimes the term "rentable building area" or "gross building area" are used to include the leased space plus the common areas.

How Does Common Area Maintenance Work?

CAM fees are part of the terms in a commercial real estate lease agreement, so it's essential to understand how they work.

Typical Fees in a Common Area

The CAM fee you pay is for the upkeep of these common areas, including maintenance, repairs, and operating costs like snow removal and landscaping. Other common areas covered by CAM fees include the roof, structural elements, walkways, and common restrooms.