Understanding CAM (Common Area Maintenance) Fees
Understanding CAM (Common Area Maintenance) Fees
If a tenant tours a space and asks, “Why is the rent higher than the listing?” CAM fees usually explain it. The best support comes from a commercial real estate agent who negotiates leases often and knows how landlords build charges. CAM stands for Common Area Maintenance, and it can change the true monthly cost on a commercial lease. A common mistake is comparing two spaces using base rent only. Another mistake is signing quickly because the location feels perfect, then learning the fees sit outside the quoted rate.
CAM fees cover shared areas that everyone uses, like parking lots, sidewalks, lighting, snow removal, landscaping, and common hallway cleaning. Some properties also add management fees, security, trash service, and minor repairs. In many retail and office centers, CAM shows up as part of a NNN structure, so the tenant pays base rent plus CAM, plus property taxes and insurance. On a modified gross lease, a landlord may charge CAM above an expense stop or a base year, so the tenant sees increases over time. Tenants should ask for the current CAM budget, last year’s reconciliation, and the right to audit. They should also ask if the landlord caps annual increases and which big items stay excluded, like roof replacement or major structural work. These details matter because a low base rent with high CAM can cost more than a higher base rent with stable charges.
TDG Commercial RE helps Rochester tenants understand the full picture before they sign. As one of the best commercial real estate agents in Rochester for leasing, the team breaks down base rent, CAM, taxes, and insurance into one clear monthly estimate. TDG Commercial RE requests budgets and reconciliations, then flags red items like vague “administration” charges or unpredictable maintenance. The team also uses local relationships with landlords and property managers to get fast answers and cleaner lease language. Clients searching commercial real estate for lease near me or commercial real estate for rent near me get straight guidance and strong negotiation, including caps, audit language, and clear definitions of what counts as CAM. That practical approach protects budgets and prevents surprise bills after move in.
