The cost of electricity, bulb replacements, and fixture maintenance for lighting in shared building spaces such as lobbies, hallways, stairwells, parking areas, and exterior walkways. This is one of the most common line items on a CAM reconciliation statement.
Common area lighting encompasses all costs associated with illuminating non-tenant-exclusive spaces: electricity consumption, lamp and LED replacement, ballast repairs, fixture cleaning, photocell and timer maintenance, and emergency lighting battery testing. The expense is allocated to tenants via their pro-rata share of total CAM costs. Lease language should specify whether parking lot and exterior lighting is included or carved out.
A landlord replaced all common area fluorescent fixtures with LED panels at a total cost of $165,000 and passed the full amount through as a single-year operating expense. LED upgrades are capital improvements with a useful life of 10+ years and should have been amortized, not expensed in full.
Check whether large lighting expenses on your reconciliation are maintenance costs or capital upgrades. Fixture replacements and lighting retrofits should be amortized over their useful life, not charged as a single-year expense. Flag any single-year spike in lighting costs.
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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.
