Grocery anchors negotiate steep CAM discounts that get shifted to inline tenants. If your per-SF CAM rate is more than double the center average, dig deeper.
A grocery-anchored center is a retail shopping center where a supermarket or grocery store serves as the primary anchor tenant, typically occupying 40,000 to 70,000 square feet. The remaining inline spaces house complementary tenants like restaurants, salons, medical clinics, and service businesses. CAM structures reflect the anchor's dominant position and negotiating power.
Typical Lease
Triple Net (NNN)
Avg CAM/SF
$5.00 to $10.00
Mgmt Fee %
4% to 6%
Grocery-anchored center CAM is shaped by the anchor's lease, which typically includes a CAM cap, expense exclusions, and sometimes a flat CAM rate. Costs that the grocery anchor does not pay are absorbed by inline tenants. The anchor's disproportionate bargaining power creates a two-tier cost structure where inline tenants pay significantly more per SF.
When the grocery anchor pays a flat or heavily capped CAM rate, the difference between actual costs and the anchor's contribution is spread across inline tenants. This can make inline CAM rates 2x to 3x the anchor rate.
Grease trap cleaning, pest control related to food operations, and delivery area maintenance primarily serve the grocery anchor and food tenants. Non-food inline tenants should not bear these costs unless the lease specifies otherwise.
Grocery stores often operate 16 to 24 hours daily, requiring extended common area lighting and security. These costs are spread across all tenants despite shorter operating hours for inline businesses.
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$7.80/SF
Average grocery-anchored center inline tenant CAM charges are estimated at $7.80 per square foot [industry estimate]
Source: ICSC / JLL Retail Outlook (2024)
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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.
