CAM charges, also called CAM rent or CAM expenses, are the fees commercial tenants pay for their proportionate share of maintaining shared building areas and common systems. Charged separately from base rent in triple net and modified gross leases, CAM covers expenses such as parking lot upkeep, landscaping, lobby maintenance, common utilities, and building management. Landlords estimate monthly payments and reconcile actual costs annually.
CAM charges are computed as: (tenant rentable area ÷ total building leasable area) × total annual CAM expense pool. The pool includes only costs explicitly permitted under the lease, typically operating and maintenance expenses, excluding capital improvements, leasing commissions, tenant improvement allowances, and landlord overhead unless the lease specifies otherwise. Landlords issue monthly estimates and an annual reconciliation statement that results in either a credit (tenant overpaid) or an additional balance owed (tenant underpaid).
Common CAM charge overcharges include: management fees billed at 15% of gross receipts instead of the lease-permitted 5% of CAM costs; a full roof replacement billed in the reconciliation year rather than amortized over 15 years; and expenses for vacant suites included without a gross-up adjustment. Experienced CAM auditors report errors in the majority of reconciliation statements they review, with underpayments and overpayments spanning thousands of dollars per year.
Request full backup documentation for every line item in your CAM reconciliation: invoices, contracts, and allocation schedules. Compare each expense against your lease's permitted expense list and exclusions. Pay particular attention to management fees, insurance allocations, and any line item that increased more than 10% year-over-year. CAMAudit's detection engine flags overcharges automatically by comparing each line item against your specific lease language.
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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.
