Outlet mall tenants pay CAM plus separate marketing fund contributions. The overlap between these two billing streams is where overcharges hide.
An outlet mall is a retail center where manufacturers and brands sell directly to consumers at discounted prices. These open-air or partially enclosed properties typically feature 200,000 to 800,000 square feet of GLA with a uniform storefront design. CAM charges cover shared walkways, directory signage, marketing programs, and parking facilities.
Typical Lease
Triple Net (NNN) with percentage rent
Avg CAM/SF
$7.00 to $14.00
Mgmt Fee %
5% to 7%
Outlet mall CAM includes standard operating expenses plus mandatory marketing and advertising fund contributions. These marketing costs are often substantial, as outlet malls rely on regional advertising and tourism-driven foot traffic. Tenants typically pay both base CAM and a separate marketing contribution.
Outlet mall tenants often pay a separate marketing fund contribution. Landlords may also include marketing-related costs in the base CAM reconciliation, resulting in tenants paying twice for the same promotional activities.
Shuttle services, tourism kiosks, and wayfinding installations are infrastructure investments that benefit the property long-term. Passing the full cost through as annual operating expenses overstates CAM.
In outlet malls with fluctuating seasonal tenants, the gross-up calculation can be manipulated if the landlord uses a different vacancy assumption for grossing up than actual occupancy levels support.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
$10.50/SF
Average outlet mall total occupancy costs (CAM plus marketing) are estimated at $10.50 per square foot [industry estimate]
Source: ICSC Outlet Center Report (2024)
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
Next Best Step
Walk through the full audit steps before you upload your lease and CAM statement.
Review the audit process before you upload your lease and reconciliation.
See the output and proof structure before you commit.
Run the free audit when you want documented findings.
Ready to skip the reading and document the overcharge directly?
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.
