A computerized control system that monitors and manages a building's mechanical and electrical equipment, including HVAC, lighting, fire systems, and security. BMS maintenance, software licensing, and monitoring fees are commonly passed through as CAM expenses.
A Building Management System (also called Building Automation System or BAS) is the centralized platform controlling HVAC scheduling, energy management, fire alarm monitoring, access control, and lighting automation. CAM-eligible BMS costs include annual maintenance contracts, software license renewals, sensor calibration, and 24/7 monitoring fees. System upgrades, panel replacements, and new installations are capital expenditures that should be amortized.
A landlord replaced the entire BMS platform at a cost of $340,000 and passed it through as a single-year "maintenance" expense. The new system had a 20-year useful life. By expensing it fully in year one, the landlord inflated that year's CAM by over $3.40 per square foot.
Distinguish between BMS maintenance (legitimate CAM) and BMS upgrades or replacements (capital expenditures). If BMS costs spike year over year, request invoices. Annual maintenance contracts for a mid-size building typically run $15,000 to $40,000. Anything substantially higher likely includes capital work.
Worried about building management system (bms) in your lease?
Need to extract lease terms before your audit?
A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.
Go to lextract.ioUpload two PDFs. 14 detection rules. Under 15 minutes. Free.
Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
