Commercial leases outline the obligations of business tenants and landlords. The lease clarifies the base rent. The lease should also address maintenance and property repairs.
Many times, landlords take at least partial responsibility for facility maintenance, although some commercial leases make tenants responsible for all repair costs. Those renting units in larger facilities, including strip malls or shared office buildings, may need to pay an additional fee every month beyond their base rent costs. Specifically, their landlord may impose common area maintenance (CAM) fees.
What do CAM charges cover?
Landlords pay to maintain parking lots and building infrastructure when they operate multi-tenant facilities. They may provide security services and public restrooms. All of those services add up over time.
In some cases, landlords who have long operated the same facilities can estimate monthly costs with relative accuracy. In those scenarios, they can collect a set amount for monthly CAM fees. Other times, CAM fees may be variable, meaning that the landlord charges each tenant for a percentage of the overall cost of maintaining the facilities. CAM fees can significantly increase what a commercial tenant pays monthly for their space.
In some cases, it may be possible to negotiate CAM fees, especially if a tenant is unlikely to have many workers or customers visiting, meaning they create less wear and tear on shared facility infrastructure. Carefully reviewing the terms proposed in a commercial lease can make it much easier for business tenants to evaluate specific rental units.
An attorney familiar with the nuances of commercial leases can provide critical insight for those looking to rent business space, including concerns related to certain fees and fee structures.