Common area maintenance (CAM) is a term used in commercial real estate to refer to the ongoing maintenance and upkeep of shared spaces within a building or complex. These shared spaces, also known as common areas, are typically owned and maintained by the landlord or property manager, and are used by all tenants within the building.
Some examples of common areas in a commercial building may include lobbies, elevators, restrooms, hallways, and outdoor spaces such as parking lots and landscaped areas. These areas are used by all tenants and their employees and customers, and as such, it is important for them to be well-maintained in order to create a positive experience for everyone who uses them.
CAM expenses can include a wide range of costs, such as cleaning and janitorial services, landscaping, snow removal, and repairs and maintenance to common area fixtures and infrastructure. These expenses are typically included as a separate line item on a tenant’s monthly rent or lease payment, and are based on the square footage of the tenant’s leased space.
One of the main benefits of CAM is that it allows tenants to focus on running their businesses, rather than having to worry about the maintenance and upkeep of shared spaces. It also ensures that common areas are kept in good condition, which can enhance the overall value and appeal of the building or complex.
CAM can be a complex and challenging aspect of commercial real estate, and it is important for landlords and tenants to have a clear understanding of their respective responsibilities and obligations when it comes to maintaining common areas. Working together, landlords and tenants can ensure that common areas are well-maintained and contribute to a positive experience for all who use them.