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 have 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.

---

Understanding CAM isn’t just about reading the fine print, it’s about protecting your bottom line before you sign. The difference between a well-structured lease and a vague one can add up to tens of thousands over time, especially in competitive Triangle submarkets.

At SVN | Real Estate Associates, we help tenants break down lease terms line-by-line and identify hidden costs before they become real expenses.

Considering a new space or renewing your current lease? Ask for our “CAM Charge Breakdown & Lease Review” and we’ll help you uncover exactly what you’re paying for and where you may have room to negotiate. No pressure, just clarity!