How should CAM be allocated in a flex space building?

Ideally, flex space CAM should distinguish between office-related costs (HVAC, janitorial) and industrial costs (truck court, loading docks). Office costs should be allocated by conditioned square footage, while shared infrastructure costs should use total GLA.

Why do flex space tenants face unique CAM risks?

The hybrid nature of flex space creates allocation challenges. Tenants with different office-to-warehouse ratios have different cost profiles, but many leases use a single flat CAM rate that does not account for these differences.

Can CAMAudit audit flex space allocations?

Yes. CAMAudit examines pro-rata share calculations, utility allocation methods, management fee structures, and expense classifications. Upload your flex space reconciliation to identify allocation errors and overcharges.

Flex Space

Last updated: April 2026

By Angel Campa, Founder

Flex space CAM should vary by office finish ratio, but most leases use flat rates. If you are warehouse-heavy, you may be subsidizing your office-heavy neighbors.

What Is a Flex Space?

Flex space is a hybrid commercial property combining office, warehouse, showroom, or light manufacturing uses in a single building. These versatile properties typically feature 15% to 50% office finish with the remainder as open warehouse or production space. CAM charges reflect the mixed-use nature, with different cost profiles for the office and industrial portions.

Typical Lease

Triple Net (NNN) or Modified Gross

Avg CAM/SF

$3.00 to $7.00

Mgmt Fee %

3% to 5%

How CAM Works in a Flex Space

Flex space CAM bridges office and industrial cost structures. Tenants with higher office finish ratios consume more HVAC and janitorial services, while warehouse-heavy tenants use more truck court and loading infrastructure. Fair allocation requires distinguishing between office-related and industrial-related common costs.

Common Tenants

Light manufacturersR&D labsShowroom operatorsTech startupsTrade contractors

Expense Categories Unique to This Property Type

•Shared loading dock and truck court access
•Office common area HVAC and janitorial
•Showroom and display area common utilities
•Shared conference and meeting rooms
•Mixed-use waste management and recycling

Common Overcharges to Watch

⚠Uniform CAM rate ignoring office-to-warehouse ratio

Flex buildings where all tenants pay the same per-SF CAM rate regardless of their office finish percentage penalize warehouse-heavy tenants. A tenant with 20% office finish subsidizes a neighbor with 50% office finish who consumes more HVAC and janitorial services.

⚠HVAC costs allocated by total SF rather than conditioned SF

HVAC costs in flex space should ideally be allocated by conditioned square footage (office portion) rather than total leased area. Warehouse tenants with minimal HVAC needs are overcharged when costs are split by total SF.

⚠Loading dock capital improvements in annual CAM

Dock leveler replacements, overhead door installations, and loading bay expansions are capital items. Landlords may pass these through as routine maintenance expenses.

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Key Data

$4.90/SF
Average flex space CAM charges are estimated at $4.90 per square foot for mixed-use buildings [industry estimate]
Source: NAIOP / SIOR Flex Space Report (2024)

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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.