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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or ‘binding and conclusive’ provisions, and on applicable state law.

State statute of limitations periods apply to written contracts and range from 3 to 10 years. Your actual lookback window may be shorter based on your lease.

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  4. /Common Area Definition Clause

Common Area Definition Clause

Last updated: April 2026

By Angel Campa, Founder

A broad common area definition can include vacant space, landlord offices, and renovation areas, making tenants pay for spaces they never use.

What Is a Common Area Definition Clause?

The common area definition clause specifies which physical spaces and facilities within a property qualify as "common areas" for the purpose of allocating maintenance and operating costs to tenants. Common areas typically include lobbies, hallways, restrooms, parking areas, and landscaped grounds, but the precise boundaries determine which maintenance costs tenants share.

Why This Clause Matters for CAM Audits

If the common area definition is overly broad, the landlord can charge tenants for maintaining spaces that primarily benefit the landlord or specific tenants. For example, including a fitness center, management office, or vacant tenant space in the common area definition means all tenants share those costs. A precise definition ensures tenants only pay for genuinely shared spaces.

Sample Lease Language

“Common Areas shall mean those portions of the Property designed for the common use and benefit of all tenants, including: lobbies, corridors, stairwells, elevators, restrooms, parking areas, sidewalks, landscaped areas, and loading docks. Common Areas shall not include: (a) any space leased or available for lease to tenants; (b) Landlord's management or administrative offices; (c) mechanical rooms, electrical closets, or utility spaces serving individual tenant premises; (d) areas under construction or renovation; or (e) any space used exclusively by a single tenant.”

This is illustrative language only. Your actual lease language controls your rights.

Red Flags to Watch

  • ⚠Common area definition includes vacant tenant space or space available for lease
  • ⚠Landlord's offices or exclusive-use areas are included in common areas
  • ⚠No specific list of what is and is not common area
  • ⚠Definition allows landlord to unilaterally redesignate areas as common
  • ⚠Areas under construction are included, shifting renovation costs to tenants
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Negotiation Tips

  • ✓Require a specific list of included and excluded areas, ideally referencing a floor plan exhibit
  • ✓Exclude vacant space, landlord offices, and any area used exclusively by a single party
  • ✓Add a provision that changes to the common area definition require tenant consent or result in a pro-rata share adjustment
  • ✓Prohibit the landlord from designating areas under renovation as common areas until work is complete

Key Data

  • 20-30%

    An estimated 20-30% of commercial properties include non-shared spaces in their common area calculations [industry estimate]

    Source: BOMA / Property Management Analysis (2024)

Explore Other Lease Clauses

Audit Rights ClauseCAM Cap ClauseCAM Exclusion ClauseGross-Up ProvisionManagement Fee ClausePro-Rata Share Definition ClauseBase Year Stop ClauseControllable vs Non-Controllable Expense ClauseCapital Expenditure Exclusion ClauseSelf-Help Remedy ClauseReconciliation Statement Deadline ClauseCo-Tenancy Clause
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The Commercial Tenant's Guide to Triple Net (NNN) Leases
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Triple-Net Lease Overcharges: Patterns and Recovery
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What Is an NNN Lease? Complete Tenant Guide (2026)
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NNN Lease Audit: What to Review and When to Dispute

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Related Resources

Detection RuleCommon Area MisclassificationDetection RuleExcluded Service ChargesDetection RulePro-Rata Share ErrorCAM Line ItemParking Lot Maintenance & RepairCAM Line ItemLandscaping & Grounds CareLease TypeTriple Net Lease (NNN)

Frequently asked questions

Need to extract lease terms before your audit?

A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.

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This 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.