Understanding CAM Charges: What You’re Really Paying For…
Think you’re paying just rent? Wait till you see what CAM charges really include—here’s what to check before you sign your next lease.
If you lease commercial space in the Triangle—whether a storefront in Brier Creek or an office condo in Chapel Hill—you’ve probably noticed “CAM charges” on your rent invoice. CAM stands for Common Area Maintenance, and understanding it can save you thousands over the life of your lease.
1. What CAM Charges Cover
CAM fees fund the maintenance of areas shared by all tenants. Typical inclusions:
Landscaping and parking lot upkeep
Sidewalks, lighting, and signage
Exterior building repairs
Security, snow removal, and pest control
Management and administrative fees
Essentially, CAM keeps the property safe, accessible, and attractive to customers and employees alike.
2. How CAM Charges Are Calculated
Tenants pay their pro-rata share—their portion of the total square footage.
Example: If you occupy 2,000 sq. ft. in a 20,000-sq.-ft. building, you’re responsible for 10% of total CAM costs.
In multi-tenant retail centers or business parks, owners often budget CAM annually and reconcile the true cost at year’s end (more on that below).
3. Gross vs. Net Leases
In a gross lease, CAM is baked into your rent.
In a net lease, you pay base rent plus CAM, insurance, and taxes.
Understanding which you’re signing is critical when comparing spaces—especially across Durham, Cary, and RTP submarkets, where lease types vary by property class.
4. What to Watch For
Ask your broker or attorney to review:
Management fees over 10% of total CAM
Capital improvements billed as CAM (a red flag)
“Administrative” catch-all categories
Non-recurring expenses like roof replacements
A good tenant rep broker can often negotiate CAM caps or clearer definitions to keep surprises minimal.