CAM Basics
What does CAM stand for?
Common Area Maintenance
What is an example of a standard CAM expense?
-Landscaping
-Snow Removal
-Parking Lot Sweeping
-Parking Lot Paving/Patching
-Security
-Irrigation
-Parking Lot Lighting
What is Pro Rata Share based on?
Tenant's share of the total rentable area
What is the purpose of a CAM cap?
to limit CAM increases for the Tenant
What is the purpose of CAM charges?
To cover shared property expenses
What is an example of a shared space at a shopping center?
-Parking Lots
-Sidewalks
-Hallways
-Lobbies
-Shared restrooms
-Elevators
A Tenant occupies 1,000sf of a 10,000sf center. What is their pro rata share?
10%
What is a type of CAM Cap?
-Fixed cap
-Percentage increase
When are CAM charges negotiable?
During Lease negotiations
Would an electric account that serves only one specific unit and not the entire center be able to be passed through to all Tenants through CAM?
No - this would need to be billed back to the specific Tenant whos unit it serves
What is gross leasable area?
Total floor area designated for Tenant occupancy
Are CAM caps typically applicable to Property Tax and Insurance?
No
In a Gross Lease, who pays for CAM?
The Landlord
How often is a CAM Reconciliation usually done?
Annually
If a Tenant's Pro Rata Share of Property Tax is 10% and the 2025 Property Tax bill is $30,000, what would that Tenant's share of Property Tax expense be for 2025?
$3,000
If a Tenant has a 5% cap on CAM beginning in Lease Year 2, and their total CAM expense in Lease Year 1 was $2,000, what is their CAM cap amount for Lease Year 2?
$2,100