Understanding The CAM (Common Area Maintenance) charge in a NNN lease

Understanding The CAM (Common Area Maintenance) charge in a NNN lease

The CAM (Common Area Maintenance) charge in a NNN lease is calculated by adding up the costs associated with the maintenance and operation of the common areas of the property, such as landscaping, snow removal, cleaning, security, and repairs.

The calculation of CAM charges typically involves three steps:

Determine the total budget for common area maintenance expenses for the property for the upcoming year.

Divide the total budgeted expenses by the total square footage of the property to arrive at a per-square-foot cost for common area maintenance.

Multiply the per-square-foot cost by the square footage of the tenant’s leased space to arrive at the CAM charge for the tenant for the upcoming year.

In some cases, the lease agreement may also specify a cap on the CAM charges that the tenant will be responsible for, or may require the landlord to provide detailed documentation of the actual expenses incurred in order to justify the CAM charges.

Build-to-rent investing is a strategy in which an investor or a group of investors constructs or develops a rental property and then rents it out to tenants Click here to learn more

 Steelbridge Realty LLC  is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals has decades of experience and has navigated through many business cycles. Our diverse background gives us the tools to guide people toward successful decisions.

 

 

 


 

 

Visits: 58

Leave a Reply