A fee charged by the landlord or property manager for administering the property and CAM cost pool, typically calculated as a percentage of gross revenues or total operating expenses. Management fees are frequently capped in commercial leases.
Management fees are typically 3–6% of gross base rents or of CAM costs depending on lease structure. The lease usually specifies the cap explicitly (e.g., "not to exceed 4% of gross revenues"). Some leases also prohibit double-counting management and administrative fees.
A lease caps management fees at 4% of base rents = $32,000 cap. The landlord bills a 5% management fee ($40,000) AND a separate 2% 'administrative fee' ($16,000) totaling $56,000 - 175% of the allowable cap. Both are buried in the CAM pool.
Request itemized CAM statements showing the management fee as a separate line. Confirm the fee base and apply your lease's cap. If there are multiple management or administrative fees, check whether your lease prohibits stacking them.
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Start Free AuditThis 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.