Maintenance and operation of building amenity spaces including fitness centers, conference facilities, tenant lounges, and rooftop terraces in common areas.
Key Takeaways
| Lease Type | Recoverable? | Controllable? |
|---|---|---|
| NNN | Yes | Yes |
| Modified Gross | Yes | Yes |
| Full-Service Gross | No | Yes |
CapEx Risk: This line item is commonly used to disguise capital expenditures as operating expenses. Verify all invoices against GAAP standards.
Approximate budget share: 1-3% of total CAM pool.
Fitness center and amenity maintenance covers the ongoing operation of shared building amenity spaces. Legitimate operating costs include daily cleaning, equipment maintenance contracts, supplies (towels, sanitizer, paper products), HVAC and lighting for the amenity space, and minor repair work. These are recurring costs of maintaining amenities available to all tenants and are appropriate CAM charges. The dispute risk is substantial because landlords invest in amenity spaces as a competitive leasing tool. A new fitness center build-out can cost $200,000 to $500,000 or more, and equipment packages add another $50,000 to $150,000. When these capital costs are blended into a "fitness center maintenance" line item, tenants bear the full investment in a single year. Under GAAP, the build-out is a leasehold improvement and the equipment consists of depreciable assets, both of which must be capitalized. Tenants should verify when each amenity space was built or renovated and compare the maintenance costs against the expected range for ongoing operations. A new line item in the year a space opens is a strong signal that capital costs have been included.
Overcharge Risk
$2,000-$15,000/year
typical annual overcharge when this line item is disputed
Landlords build out a new fitness center or amenity space to attract tenants and pass the full construction cost through CAM as "amenity maintenance" instead of capitalizing the build-out.
This line item is commonly used to disguise capital expenditures as operating expenses. Capital expenditures must be excluded from CAM or amortized over their useful life per GAAP. If you see unusually high or one-time charges in this category, request all invoices and scope-of-work documentation before paying.
| Legitimate Charge | Suspicious Charge |
|---|---|
| Monthly cleaning, equipment servicing, and supply costs for an established fitness center | Fitness center construction or build-out costs billed as "amenity maintenance" |
| Annual equipment maintenance contract with a third-party service provider | New equipment purchase costs (treadmills, machines) expensed in a single CAM year |
| Utilities and HVAC costs attributable to the amenity space | Amenity costs appearing for the first time in the same year a new space opens |
Request vendor invoices that separate ongoing maintenance (cleaning, equipment servicing, supplies) from the original build-out and equipment purchase costs. A new fitness center or amenity space is a capital improvement. Only the ongoing operating costs are CAM-recoverable.
Check Your Fitness Center / Amenity Maintenance Charges
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