What are Common Area Maintenance (CAM) fees?

Commercial leases can come with Common Area Maintenance (CAM) fees, which help the landlord pay for upkeep on the property’s common areas. While CAM fees are common in leases, they can vary from space to space and year to year. When signing a lease for a commercial space, be sure you understand all parts of the Common Area Maintenance fees.

What do CAM Fees Cover?

As the term suggests, CAM fees help to pay for the cost and upkeep of common areas in the building and grounds of a commercial property. Common areas can include hallways, shared bathrooms, lobbies, elevators, as well as the parking lot and landscaping. CAM fees in a lease typically include regular maintenance to the property and building, but can also consist of emergency repairs, security systems, signage, insurance, and in some instances salaries of administrative staff.

Variable CAM Fees

If you have a lease with variable CAM fees, this means the fees you are charged can increase based on factors outlined in the contract. If the factors are not explicitly stated, find out what they are from your landlord and get them in writing. You should also find out if there is a cap to how high the fees will go.

Flat CAM Fees

Flat CAM fees in an agreement mean the fees are fixed, and will not adjust up or down. Depending on the lease, these fees can be paid monthly, quarterly, or annually. Sometimes, the costs of major renovations are separate from flat CAM fees. If this is the case, determine if there are scheduled renovations happening in the future.

With commercial leases, there is not a standard on what can and cannot be included in CAM fees. While most landlords will not take advantage of their tenants, it is important to always carefully read your lease and get clarification on any items that are not explicitly stated.

 

What is Facilities Maintenance?

A lot of relief comes with the completion of a residential or commercial project. But what comes next? Even after brand new construction, there is a great deal of upkeep to consider in order to maintain the quality and integrity of the buildings and grounds. Facilities maintenance ensures both general maintenance and emergencies are taken care of by experts.

Including the facilities manager during the planning and construction phases is a good idea. This allows the facilities manager to provide input, helping to decide what products and materials will hold up best for the space and foot traffic. Once the building is complete, facilities maintenance performs routine services to prevent degradation. Services of facilities maintenance may include:

  • General building repairs
  • Routine exterior painting and painting of interior common spaces
  • Implementation of operating procedures
  • Safety code compliance

In addition, if an emergency should arise, facilities maintenance has the expertise and contacts to fix the problem. Horton Group provides facilities maintenance services for both residential and commercial developments. We know quality maintenance will prolong the aesthetic appeal and product longevity of any space.

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