Neighborhood center CAM is simple, but simple does not mean error-free. Management fee overcharges and unauthorized roof repair pass-throughs are the most common issues.
A neighborhood center is a small to mid-size retail property of 30,000 to 100,000 square feet, typically anchored by a supermarket or large drugstore. These centers serve the daily convenience needs of the surrounding residential community. CAM charges are moderate and cover shared parking, landscaping, and basic common area maintenance.
Typical Lease
Triple Net (NNN)
Avg CAM/SF
$4.00 to $8.00
Mgmt Fee %
4% to 6%
Neighborhood center CAM is straightforward: tenants pay pro-rata shares based on GLA for parking lot maintenance, landscaping, exterior lighting, and trash removal. The anchor tenant typically negotiates some exclusions or caps, shifting a modest cost burden to inline tenants.
Neighborhood centers are straightforward to manage. Some landlords apply the management fee to total expenses including taxes and insurance rather than just controllable operating expenses, inflating the fee base.
Roof repairs and structural maintenance are typically the landlord's responsibility under NNN leases unless the lease explicitly passes them through. Some landlords include these costs in the CAM reconciliation.
Some landlords charge both a management fee and a separate "administrative fee" or "accounting fee" for the same reconciliation and bookkeeping work. This effectively double-charges for property management.
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$5.90/SF
Average neighborhood center CAM charges are estimated at $5.90 per square foot for inline tenants [industry estimate]
Source: ICSC / Marcus & Millichap Retail Report (2024)
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Next Best Step
Walk through the full audit steps before you upload your lease and CAM statement.
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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.
