What is CAM?
Common areas in commercial real estate refer to portions of a building that are shared by multiple tenants. Common areas include hallways, elevators, lobbies, bathrooms and parking lots. In addition to the base rent, commercial tenants are generally obligated to pay their share of the costs necessary to maintain building common areas. These costs are often referred to as “CAM” costs .
CAM costs can vary widely from building to building, be extremely complicated to calculate, and even more complicated to allocate amongst the many tenants in a commercial building. With the considerable financial burden they represent, it is crucial for tenants to protect themselves by ensuring that their share of CAM costs is properly calculated.