Strip centers carry straightforward NNN leases, but the small tenant count means each overcharge hits harder. Watch for parking lot capital pass-throughs and vacancy-inflated shares.
A strip center is a small, open-air retail property with a single row of storefronts that share a common parking lot. Strip centers typically range from 5,000 to 30,000 square feet of leasable area and lack an anchor tenant. CAM charges in strip centers cover parking lot maintenance, exterior lighting, trash removal, and shared signage upkeep.
Typical Lease
Triple Net (NNN)
Avg CAM/SF
$4.00 to $8.00
Mgmt Fee %
4% to 6%
Tenants pay a pro-rata share of total operating expenses based on their leased square footage relative to the total gross leasable area (GLA). Because strip centers lack anchor tenants, the CAM denominator is straightforward but leaves smaller tenants shouldering proportionally higher costs when vacancies occur.
Landlords sometimes pass through full parking lot repaving as an operating expense rather than capitalizing and amortizing it. This inflates CAM charges significantly in the year of the project.
When units sit empty, landlords may not gross up expenses, effectively forcing occupied tenants to cover the vacant units' share of common costs.
Some landlords compute the management fee on total billings including the fee itself, creating a compounding overcharge that adds 0.2% to 0.5% above the stated rate.
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$6.20/SF
Average strip center CAM charges are estimated at $6.20 per square foot nationally [industry estimate]
Source: IREM / BOMA Industry Surveys (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.
