Pad site CAM hinges on one question: does your lease require center CAM participation? If not, you should not be paying it. If yes, verify the denominator.
A standalone pad site (or outparcel) is a freestanding single-tenant building located on the periphery of a larger shopping center or commercial development. Fast food restaurants, banks, pharmacies, and auto service businesses commonly occupy these sites. CAM obligations vary widely: some pad tenants share in the center's CAM pool while others are responsible only for their own parcel.
Typical Lease
Absolute Net or Ground Lease
Avg CAM/SF
$2.00 to $6.00 (if participating in center CAM)
Mgmt Fee %
2% to 4%
Pad site CAM depends on whether the tenant participates in the center's common area cost pool. Some pad leases exclude the tenant from center CAM entirely (absolute net), while others require pro-rata participation in shared parking, access roads, and signage. The inclusion or exclusion of pad tenants affects both the pad tenant and the inline tenants' cost calculations.
Some pad leases specifically exclude the tenant from center-wide CAM. Landlords may still include center CAM charges on the reconciliation, billing costs that the lease does not authorize.
A pad tenant participating in center CAM should have their share calculated based on the appropriate denominator. Using total center GLA when the pad has limited shared area access inflates the pad tenant's charges.
Pad tenants who carry their own property insurance may still be billed for the center's master insurance policy through CAM. This creates a double insurance cost.
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$3.80/SF
Average pad site CAM contributions are estimated at $3.80 per square foot when participating in center CAM [industry estimate]
Source: ICSC / CoStar Retail Analysis (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.
