Common area maintenance (CAM)

CAM charges are common in retail and mixed-use properties. Costs such as parking lot upkeep, landscaping, common utilities and security are pooled and divided among tenants, usually by each tenant's share of leasable square footage.

Tenants typically pay monthly estimates, and after year-end the manager performs a CAM reconciliation: actual costs are compared with estimates, and each tenant is billed for a shortfall or credited for an overpayment. Lease language decides which costs are recoverable and whether caps apply.