Common area maintenance (CAM)
Fees tenants pay for upkeep of shared areas like parking lots, lobbies, landscaping and security, usually split by each tenant's share of the space. Estimates are billed monthly and reconciled once a year.
Also called: CAM, CAM charges, CAM fees, common area charges
Related terms
A lease where the tenant pays base rent plus its share of property taxes, insurance and maintenance. The landlord's income is more predictable, and the tenant takes on rising operating costs.
A middle ground between gross and net leases, where tenant and landlord split operating costs in a way the lease spells out. Tenants often pay utilities and janitorial while the landlord pays taxes and insurance.
The ongoing costs of running a property, such as taxes, insurance, repairs, management, utilities and HOA dues. They do not include mortgage payments or major capital improvements.
A tenant's usable space plus its share of building common areas like lobbies, corridors and restrooms. Commercial rent is usually charged on rentable, not usable, square feet.
The ratio of rentable to usable square feet, showing how much shared space is added to a tenant's suite. A 1.15 load factor means paying for 15% more space than you occupy.