The exterior signage, lobby directory, wayfinding signs, and tenant identification systems in a commercial building. Maintenance and updates to shared signage are commonly included in CAM, while individual tenant signage is typically the tenant's expense.
Building signage and directory expenses include lobby directory board maintenance and updates, exterior monument sign upkeep, wayfinding and regulatory sign replacement, illuminated sign electrical costs, and ADA-compliant signage. Shared signage serving the building as a whole is a CAM expense. Individual tenant suite signs, storefront signs, and pylon sign panels are typically tenant-paid per the lease signage provisions. Digital directory systems may include annual software licensing fees.
A landlord replaced the building's exterior monument sign with a new digital display costing $95,000 and passed the entire cost through CAM as "signage maintenance." The digital sign primarily benefited the landlord's marketing of the building and had a 15-year useful life, making it a capital expenditure that should have been amortized or excluded.
Signage costs in CAM should cover only shared building directories and wayfinding. If you see a large signage expense, verify it is not a capital upgrade (new monument sign, digital directory installation) or a tenant-specific sign cost that was improperly pooled. Request invoices for any amount that exceeds typical annual maintenance.
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