What is Common Area Maintenance (CAM)?
Common Area Maintenance charges are the tenant's share of the cost to operate and maintain shared areas of a commercial property — parking lots, lobbies, landscaping, security, and common restrooms. CAM is billed in addition to base rent, usually based on the tenant's proportion of the building. Reviewing how CAM is calculated and capped protects tenants from surprise increases.
Example: A retail tenant occupying 10% of a center pays 10% of the CAM, covering its share of parking-lot upkeep, landscaping, and shared lighting on top of base rent.