Why are regional mall CAM charges so much higher than other retail properties?

Regional malls have enclosed common areas that require HVAC, security, janitorial services, and elevator/escalator maintenance. Anchor tenants also often negotiate CAM discounts, which shifts a larger share of costs to smaller inline tenants.

What is a merchant association fee and is it separate from CAM?

A merchant association fee funds marketing and promotional activities for the mall. It is typically billed separately from CAM, but some landlords improperly include marketing costs in both the association fee and the CAM reconciliation, resulting in double charges.

How can CAMAudit help with regional mall CAM audits?

CAMAudit scans your reconciliation statement for anchor subsidy shifts, double-counted marketing expenses, capital cost pass-throughs, and management fee overcharges. Upload your documents to see exactly where your landlord may be overbilling.

Regional Mall

Last updated: April 2026

By Angel Campa, Founder

Regional malls have the highest CAM costs in retail. Anchor tenants push costs to inline tenants, and multi-layered billing creates prime conditions for overcharges.

What Is a Regional Mall?

A regional mall is a large enclosed shopping center with 400,000 or more square feet of GLA, typically anchored by two or more department stores. Regional malls have the most complex CAM structures in retail, with tiered charges, merchant association fees, and marketing fund contributions layered on top of standard operating expenses.

Typical Lease

Triple Net (NNN) with percentage rent

Avg CAM/SF

$12.00 to $25.00

Mgmt Fee %

5% to 8%

How CAM Works in a Regional Mall

Mall CAM structures are multi-layered. Anchor tenants negotiate deeply discounted or capped CAM rates, which shifts a disproportionate share of costs to inline tenants. Marketing fund contributions and merchant association dues are often billed separately from base CAM but still flow through the same reconciliation process.

Common Tenants

National retailersDepartment storesFood court operatorsSpecialty shopsJewelry stores

Expense Categories Unique to This Property Type

•HVAC for common enclosed corridors
•Merchant association and marketing fund dues
•Food court common area maintenance
•Security and surveillance systems
•Elevator and escalator maintenance
•Interior common area janitorial services

Common Overcharges to Watch

⚠Anchor tenant CAM subsidy shifted to inline tenants

When anchor tenants pay a flat or heavily capped CAM rate, the remaining costs are spread across inline tenants at a much higher per-SF rate. The effective pro-rata share for inline tenants can exceed their actual square footage percentage.

⚠Marketing fund expenses included in CAM reconciliation

Landlords may double-count marketing and promotional costs by including them in both the marketing fund contribution and the CAM operating expense reconciliation.

⚠Capital improvement costs passed as operating expenses

Major renovations, roof replacements, and HVAC overhauls should be capitalized and amortized. Landlords sometimes pass these through as single-year CAM charges, causing spikes.

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Key Data

$18.50/SF
Average regional mall CAM charges for inline tenants are estimated at $18.50 per square foot [industry estimate]
Source: ICSC Research / Industry Reports (2024)

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Explore Related Resources

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Related Resources

Detection RuleGross Lease Charges Detection RuleExcluded Service Charges Detection RuleManagement Fee Overcharge ResourcesCAM Audit by Lease Type ResourcesLease Clauses Guide ToolsFree CAM Audit Tools

Frequently asked questions

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.