Seasonal decorations for common areas including holiday lighting, lobby displays, exterior decorations, and installation/removal labor.
Key Takeaways
| Lease Type | Recoverable? | Controllable? |
|---|---|---|
| NNN | Yes | Yes |
| Modified Gross | Yes | Yes |
| Full-Service Gross | No | Yes |
Approximate budget share: 0.1-0.5% of total CAM pool.
Holiday decorations cover the seasonal enhancement of common areas during major holiday periods. Standard costs include pre-fabricated holiday lighting, lobby tree and wreath installations, exterior garland and light strings, and the labor for installation and removal. In retail properties, seasonal decorations are a more significant expense because they serve a customer experience function. In office properties, the costs are typically modest. The dispute risk centers on reasonableness and authorization. Many commercial leases do not explicitly include holiday decorations in the CAM definition, which means the landlord may lack contractual authority to pass the cost through. Even where authorized, the cost must be proportionate to the property. Premium custom displays, professional design fees, and event-style installations that serve the landlord's property marketing program rather than tenant operations are not standard CAM items. Tenants should also watch for "seasonal decoration" charges that span months beyond actual holiday periods, which may indicate the landlord is spreading inflated costs over a longer billing window.
Overcharge Risk
$500-$5,000/year
typical annual overcharge when this line item is disputed
Landlords pass through excessive decoration budgets, premium display installations, or year-round "seasonal" costs that benefit the property's marketing image more than the tenants' operations.
| Legitimate Charge | Suspicious Charge |
|---|---|
| Standard holiday lighting and lobby wreath installation with seasonal labor | Custom-designed holiday display with professional design fees billed through CAM |
| Modest exterior light strings and garland for the holiday period | Year-round "seasonal decoration" charges extending well beyond holiday periods |
| Consistent annual decoration costs appropriate for the property size | Decoration costs that triple after a property rebrand or ownership change |
Review your lease for specific language authorizing holiday decoration pass-through. Many leases are silent on decorations, which means the cost may not be recoverable. Even where permitted, challenge costs that are excessive relative to the property type and size, or that benefit the landlord's marketing rather than tenant operations.
Check Your Holiday Decorations Charges
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