The Real Estate Beginners Guide to Common Area Maintenance (CAM) Fees in 2025
When leasing commercial property, tenants quickly realize that rent isn’t the only cost. Alongside base rent, tenants are often responsible for Common Area Maintenance (CAM) fees, which cover the expenses of maintaining and operating shared spaces.
From landscaping and janitorial services to parking lot repairs and elevator maintenance, CAM fees ensure that common areas remain safe, functional, and attractive. These fees directly impact tenant experience and property value, making them a central part of any commercial lease agreement.
In this guide, we’ll break down what CAM fees are, how they work, their benefits and drawbacks, and the best practices for landlords and tenants navigating them in 2025.
An Overview of CAM Fees
What Are CAM Fees?
Common Area Maintenance (CAM) fees are charges tenants pay in addition to base rent to cover the cost of maintaining and managing shared spaces in a commercial property.
Why Do CAM Fees Matter?
For Tenants: They ensure shared facilities are safe, clean, and usable.
For Landlords: They reimburse property owners for necessary upkeep expenses.
For Properties: They preserve long-term property value and tenant satisfaction.
What CAM Fees Typically Cover
Landscaping: Lawn care, tree trimming, seasonal planting.
Janitorial Services: Cleaning of lobbies, restrooms, and hallways.
Repairs and Maintenance: Parking lot resurfacing, roof repairs, HVAC servicing.
Utilities for Common Areas: Electricity, water, heating, and cooling in shared spaces.
Security: Guards, monitoring systems, and access controls.
Snow and Ice Removal: Essential in colder climates.
Lighting: Indoor and outdoor common area lighting.
How CAM Fees Are Calculated
Pro Rata Share: Based on the tenant’s percentage of rentable space relative to the total property.
Fixed CAM Fees: A set monthly charge, regardless of actual costs.
Variable CAM Fees: Adjusted annually based on actual expenses.
Caps and Floors: Many leases limit annual increases in CAM charges.
Reconciliations: At year-end, landlords compare estimated CAM charges with actual expenses, issuing refunds or bills.
Benefits of CAM Fees
Tenant Benefits: Access to well-maintained, safe, and attractive shared areas.
Landlord Benefits: Reimburses landlords for necessary operational costs.
Property Benefits: Maintains curb appeal and functionality, supporting property values.
Fair Distribution: Costs are shared among all tenants using common areas.
Challenges and Drawbacks
Lack of Transparency: Tenants may not fully understand what costs are included.
Unexpected Increases: Variable expenses can spike year to year.
Disputes Over Inclusion: Tenants and landlords may disagree on whether certain costs (like capital improvements) belong in CAM.
Impact on Affordability: High CAM fees can make otherwise affordable leases expensive.
Legal and Lease Considerations
Lease Clarity: Leases should clearly define what costs are included in CAM.
Audit Rights: Tenants often negotiate the right to review CAM expense records.
Exclusions: Administrative overhead or unrelated landlord costs are typically excluded.
Caps on CAM Increases: Tenants may negotiate limits to avoid sudden cost jumps.
CAM Reconciliation: Leases should specify how overages and underpayments are handled.
CAM vs. CAC
CAM Fees (Common Area Maintenance): Narrowly focused on maintenance and upkeep costs.
CAC (Common Area Charges): Broader, often including insurance, taxes, and administrative fees.
Understanding this distinction helps tenants evaluate the true cost of leasing.
Negotiating CAM Fees
Request Detailed Breakdowns: Transparency builds trust.
Negotiate Caps: Limit annual increases to a set percentage.
Define Exclusions: Ensure capital improvements or unrelated costs are excluded.
Audit Provisions: Insist on the right to review CAM expense reports.
Benchmark Costs: Compare CAM fees with similar properties in the market.
Trends in 2025
Sustainability Costs: Green initiatives, like recycling programs and solar power, increasingly fall under CAM.
Smart Building Expenses: Technology-driven upgrades (IoT devices, smart lighting) may be included.
Tenant Push for Transparency: Tenants are demanding greater clarity and documentation.
Hybrid Work Influence: Lower office occupancy has shifted debates about fairness in cost distribution.
Amenity Expansion: Properties adding gyms, lounges, or shared workspaces factor upkeep into CAM charges.
Frequently Asked Questions
What are CAM fees?
Charges tenants pay to cover the upkeep of shared spaces in commercial properties.
How are CAM fees calculated?
Usually based on the tenant’s share of rentable space compared to the total property.
What do CAM fees include?
Maintenance, cleaning, landscaping, utilities, and repairs for common areas.
Are CAM fees negotiable?
Yes, tenants often negotiate caps, exclusions, and transparency requirements.
Do CAM fees apply to residential properties?
Typically no. Residential buildings use homeowner association (HOA) fees instead.
What’s the difference between CAM and CAC?
CAM is limited to maintenance, while CAC is broader and may include taxes, insurance, or admin fees.
Do CAM fees increase over time?
Yes, especially if costs for labor, utilities, or repairs rise.
Can tenants audit CAM fees?
Yes, many leases grant tenants audit rights to verify accuracy.
Are CAM fees fixed or variable?
They can be either, depending on the lease terms.
Why are CAM fees important?
They ensure properties remain functional, attractive, and valuable.
Related Terms and Concepts
Common Area Charges (CAC): A broader category of fees beyond just maintenance.
Triple Net Lease (NNN): Lease structure where tenants pay rent plus taxes, insurance, and CAM.
Operating Expenses: Costs incurred in maintaining a property.
Gross Lease: Lease where tenants pay a fixed rent and landlords cover expenses.
Capital Expenditures: Major improvements not always included in CAM fees.
Wrap Up – Common Area Maintenance (CAM) Fees
Common Area Maintenance (CAM) fees are an integral part of commercial real estate leasing, covering the essential costs of maintaining shared spaces. While they benefit tenants and landlords by ensuring properties are safe and attractive, they can also lead to disputes if not clearly defined and transparent.
In 2025, CAM fees are evolving to include sustainability initiatives, technology upgrades, and expanded amenities. For tenants, negotiating fair terms and demanding transparency are key to managing costs. For landlords, fairness and clarity in CAM structures are essential for long-term tenant satisfaction and property value.
