CAM

WHAT IS CAM ?
In Leasing Property - Asked by BEN C. - Feb 13, 2009
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Answer(s)

Brandi L.
Oak Brook, IL

Common Area Maintenance (hallways, parking lot, landscaping, etc..)

Feb 14, 2009
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Michael C.
Broker/Agent
Lakeland, FL

CAM = Common Area Maintenance
This is an expense pass through. Landlord charges CAM to tenant to pass through various property expense items such as RE taxes, Bldg Insurance, Maintenance etc. CAM can include any number of items. Also CAM is typically charged in addition to the quoted rent. For example - rent quoted at $20/SF, but might have CAM of an additional $4/SF. Hope this helps.

Feb 14, 2009
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Bruce R.
Broker/Agent
Woodinville, WA

Common Area Maintenance expenses can also be part of a gross lease where the landlord pays the base year (year the lease is entered into) operating expenses. In that case the tenant is expected to pay its pro rata share only the increases in those costs in subsequent lease years.

Feb 18, 2009
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Christopher K.
Broker/Agent
Ellicott City, MD

The term "CAM" is technically short for "common area maintenance." In the narrowest definition it means just that: building expenses related to maintaining the common areas of a building.
It's unfortunately in the parlance of the commercial real estate industry become interchangeable by some with "operating expenses," ie all operating expenses.
I'd encourage you to be precise: if you mean "all operating expenses including real estate taxes and insurance," say so. And if someone refers to "CAM," you may need to press them to clarify what they mean.
There a wide range of methods by which landlords recover some all or none of various expense categories.
Christopher B. Kubler, CCIM
NAI KLNB
443-574-1415

Feb 21, 2009
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