Property Management
What is a 'common area maintenance' (CAM) charge in commercial leasing?
AA monthly fee paid by all residents of a condominium complex
BA charge in commercial leases requiring tenants to share the costs of maintaining common areas (lobbies, parking, landscaping, shared spaces)✓ Correct
CA fee charged by property managers for overseeing maintenance contractors
DA capital reserve required by Illinois commercial landlords
Explanation
Common Area Maintenance (CAM) charges are fees in commercial leases (especially retail and office) requiring tenants to pay their proportionate share of costs to maintain common areas—lobbies, parking lots, landscaping, elevators, and shared building systems. CAM charges are in addition to base rent and are common in net and modified gross leases. Tenants should review CAM definitions carefully, as they can add 20-40% to effective rent.
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