The cost of collecting, hauling, and disposing of waste generated in common areas of a commercial building, including dumpster rental, scheduled pickups, and recycling services. Trash removal is a standard CAM line item in most commercial leases.
Waste management for CAM purposes covers dumpster and compactor rental, scheduled waste hauling, recycling collection, and any municipal waste fees assessed against the property for common area refuse. The expense should only include waste from shared spaces (food courts, common break rooms, exterior trash receptacles). Tenant-generated waste that requires dedicated dumpsters or specialty disposal (medical waste, hazardous materials) should be billed directly to that tenant.
A landlord contracted a single waste hauler for the entire property, including dedicated dumpsters for a grocery tenant generating three times the waste of any other occupant. The full contract cost was included in CAM and split pro-rata, effectively subsidizing the grocery tenant's waste costs at every other tenant's expense.
If your building has one or more tenants that generate disproportionate waste (restaurants, grocery stores, medical offices), verify that those tenants have separate waste contracts or are paying a proportionally higher share. Common area waste costs should reflect shared usage, not subsidize high-volume tenants.
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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.
