{"id":2030,"date":"2018-05-07T08:44:48","date_gmt":"2018-05-07T15:44:48","guid":{"rendered":"https:\/\/www.lee-associates.com\/orange\/?p=2030"},"modified":"2018-05-07T08:44:48","modified_gmt":"2018-05-07T15:44:48","slug":"common-area-maintenance","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/orange\/common-area-maintenance\/","title":{"rendered":"Behind the CAM Rate, a commercial real estate term"},"content":{"rendered":"<p>by <a href=\"https:\/\/www.lee-associates.com\/orange\/team\/bob-sattler\/\" target=\"_blank\" rel=\"noopener noreferrer\"><b>Bob Sattler<\/b><\/a>\u00a0of Lee &amp; Associates Orange<\/p>\n<p>As in any business,<strong> commercial real estate is loaded with its own jargon<\/strong>&#8211;many terms and phrases that, when used in a transactional context, mean something specific to commercial property. One of those phrases is<em> Common Area Maintenance<\/em> or CAM. You&#8217;ll hear brokers discuss CAM, and they&#8217;re not talking about engine parts.<\/p>\n<p><a href=\"http:\/\/www.loopnet.com\/commercial-real-estate-glossary\/\" target=\"_blank\" rel=\"noopener\">Common Area Maintenance (CAM)<\/a> is just that&#8211;the upkeep of shared area within a given property occupied by multiple tenants.<\/p>\n<p>How do you calculate a given tenant\u2019s share of the CAM? The amount you pay is a\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/p\/pro-rata.asp\" target=\"_blank\" rel=\"noopener\">pro-rata amount<\/a> based on your square footage versus the project or building as a whole. It is usually paid monthly in addition to your rent and can increase over the term of your lease.<\/p>\n<p>You may be wondering <strong>what are considered appropriate expenses<\/strong> to pass onto a tenant. Depending on the property type, it can include hallways, lobbies, restrooms, parking lots, exterior lighting, trash removal, insurance, etc.<\/p>\n<p>As appealing as it might be to a building owner or landlord,<strong> many costs should not be included in the CAM<\/strong>. The cost of replacing equipment or capital improvements like the roof, foundations, exterior walls or common area capital improvements, such as parking lot paving, elevators or fences with a useful life of over 5 years, are not part of the calculations.<\/p>\n<p>One question a prospective tenant should ask is if there is a CAM charge. Some property owners or landlords include it in their asking rental rate while others assess it separately. In addition, <strong>you should know what that charge is as they can vary widely<\/strong>. Depending on when a property was purchased by the landlord, property taxes can increase substantially for a recent sale, thereby increasing the CAM. By adding the CAM charge to your rent, you will have a more accurate comparison of your true rental cost per month.<\/p>\n<p>As you can see, there is a lot involved with this one industry term. And it can have a significant impact on the rent a business pays. Your best bet is to engage a professional to work with you in understanding all the costs involved in leasing space for your business. At <a href=\"https:\/\/www.lee-associates.com\/orange\/\" target=\"_blank\" rel=\"noopener\">Lee &amp; Associates Orange<\/a>, we possess the expertise to help you master the entire commercial real estate dictionary.<\/p>\n<hr \/>\n<table style=\"height: 131px;width: 920.6px\">\n<tbody>\n<tr>\n<td style=\"width: 105px\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-184\" src=\"https:\/\/www.lee-associates.com\/orange\/wp-content\/uploads\/sites\/23\/2016\/08\/Bob-Sattler-300x300.jpg\" alt=\"\" width=\"95\" height=\"95\" srcset=\"https:\/\/www.lee-associates.com\/orange\/wp-content\/uploads\/sites\/23\/2016\/08\/Bob-Sattler-300x300.jpg 300w, https:\/\/www.lee-associates.com\/orange\/wp-content\/uploads\/sites\/23\/2016\/08\/Bob-Sattler-150x150.jpg 150w, https:\/\/www.lee-associates.com\/orange\/wp-content\/uploads\/sites\/23\/2016\/08\/Bob-Sattler.jpg 400w\" sizes=\"auto, (max-width: 95px) 100vw, 95px\" \/><\/td>\n<td style=\"width: 802.6px\"><span style=\"text-decoration: underline\"><a href=\"https:\/\/www.lee-associates.com\/orange\/team\/bob-sattler\/\" target=\"_blank\" rel=\"noopener noreferrer\">About Bob Sattler<\/a><\/span><strong>\u00a0&#8211;\u00a0<\/strong>Bob is the President of the Orange office of Lee &amp; Associates and has over 35 years of experience in providing commercial real estate services to property owners and users. Experience ranges from developing small industrial buildings for sale and multi-tenant parks for lease to being a broker, leasing and selling office and industrial properties in the North Orange County market. Bob can be reached at (714) 564-7166 or bsattler@lee-associates.com.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>by Bob Sattler\u00a0of Lee &amp; Associates Orange As in any business, commercial real estate is loaded with its own jargon&#8211;many&#8230;<span class=\"readmore\"><a class=\"moretag\" href=\"https:\/\/www.lee-associates.com\/orange\/common-area-maintenance\/\">+<\/a><\/span><\/p>\n","protected":false},"author":28,"featured_media":2032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,14,16],"tags":[109,107,106,108,105,31,91,110,54,69],"class_list":["post-2030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-industry-information","category-lee-orange-exclusive","tag-building-maintenance-costs","tag-building-owner","tag-cam-fee","tag-commercial-real-estate-terms","tag-common-area-maintenance","tag-landlord","tag-leasing","tag-leasing-commercial-real-estate","tag-lee-associates-orange","tag-tenant"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Behind the CAM Rate, a commercial real estate term<\/title>\n<meta name=\"description\" content=\"Commercial real estate is loaded with its own jargon--many terms and phrases that, when used in a transactional context, mean something specific to commercial property. 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