tokyo.jpgCAM is many things to many people. Often times when people ask about the CAM for a certain property, they are inquiring about the CAM (Common Area Maintenance), Taxes and Insurance, but this is not really very accurate. CAM is separate from the taxes and insurance and for our purposes we are going with a simple definition and expand from there.

The Common Area Maintenance is the fee a retail tenant pays to the landlord for operating and maintaining the property. The landlord expects the tenant to pay CAM charges in order to recoup the expenses associated with maintaining the building façade, shared parking areas, sidewalks, landscaping, and all of the other elements that go into a retail property. It is important to remember that CAM can vary from property to property. For example, the CAM charges for a retail space in an office building in the Central Business District is likely to be different from those of a grocery anchored shopping center in suburbia.

In Part 2 of “What is CAM?”, I’ll go into how CAM is calculated by using a few examples and providing an explanation.