What Is the CAM on a Florida Property Lease?

Common area maintenance (CAM) is an expense passed from the landlord of a commercial real estate property to its tenant. The CAM rate varies by property and individual tenant lease. Florida tenants who enter into a triple-net lease (NNN) are subject to CAM charges in addition to their square footage rental rate.

What CAM Includes

The included operating expenses within a CAM rate varies by Florida property. In addition to upkeep of common grounds, such as the parking lot and sidewalks, CAM can include a host of other operating expenses for the property.

How CAM Is Calculated

CAM is prorated amongst the total number of tenants occupying a commercial property according to the individual tenants square footage of leased space.

Avoiding CAM Overcharges

A prospective tenant is entitled to request the expense budget of a property prior to lease execution to ensure their CAM rate encompasses reasonable operating expenses. For instance, depreciation of the property is not typically an appropriate expense to pass down to tenants but may be included in the CAM fee.

Lease Alternatives

Tenants can enter into a gross lease instead of a NNN lease, which includes all expenses in the square footage rate or flat monthly lease rate.

References

• Inc.: How to Get a Good Deal on a Lease
• American Bar Association: Negotiating Common Area Maintenance Costs

Resources

• American Bar Association: What Every Lawyer Needs To Know About Real Estate Leases