what is a "typical" amount of cam when leasing a space? or is there such a rule?

We are attempting to lease a space with 20% CAM. Does that seem excessive or more the norm?
In Leasing Property - Asked by Marc R. - Apr 2, 2014
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Answer(s)

Scott N.
Broker/Agent
West Warwick, RI

My First Question to you would be What Part Of The Country

Apr 2, 2014
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Thomas S.
Broker/Agent
Boca Raton, FL

20% CAM is an acceptable amount. There are many variables that can come into effect. Age of the building, length of time the landlord has owned it, deferred maintenance, high insurance rates in flood zones etc. There is no set rate rate, although 15-35% is common.
What is more important, is if the property is in the location and the budget for the tenant.

Apr 7, 2014
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

There is no hard and fast rule. It depends what is included in CAM, for example is there a true shared common area (like a kitchen, bathrooms, etc...) or just a parking lot and exterior spaces. Along with what is included it is also heavily dependent on where the property is located (for example a property in Buffalo has huge snow removal expenses that a property in TX might not).

Apr 9, 2014
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Alan C.
Broker/Agent
Suwanee, GA

"CAM" is a term thrown around a lot. It is supposed to mean Common Area Maintenance. However, many people, brokers included, often use this as a term to describe ALL operating expenses: Taxes, Insurance, Landscaping, and CAM. Be sure to clarify this with your broker or landlord. As far as the amount, it varies greatly. It depends firstly upon the asset class, then secondarily upon what part of country you're in. In Georgia, class A fortress malls may charge $6+/SF, whereas a mom & pop centers average around $3-3.50/sf. Property taxes will make up the largest share, so if your state has high property taxes (expensive areas like NY, NJ, CA, etc), your "CAM" will be commensurately high.

Apr 10, 2014
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Zachary S.
Broker/Agent
Cincinnati, OH

In our part of the country CAM is typically a per-sq-ft cost, not a % cost. Because maintenance costs vary widely building to building, CAM varies widely per sq. ft. Some owners in our area also use formulas to determine CAM for individual users based upon tenant use. However, a blanket per-sq-ft figure is more common.

Apr 11, 2014
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Randy C.
Broker/Agent
Burlingame, CA

In general, it's proportionate to your square footage as a percent of the total leasable area (IE your pro rata share) of the building. Your type of use could dictate a higher assessment though and you should get a CAM reconciliation from your Property Manager so you can better understand your charges.

Apr 18, 2014
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