CAM Fees Explained: What Common Area Maintenance Covers

What Does CAM Stand For?

CAM stands for Common Area Maintenance. It’s the tenant’s share of the cost to maintain the shared spaces of a property — parking lots, landscaping, lobbies, sidewalks, shared restrooms, and exterior lighting. If you’ve leased retail or office space, you’ve likely seen “plus CAM” attached to a base rent quote.

How CAM Fees Work

Landlords typically estimate CAM costs for the year, divide that total among tenants based on their pro rata share of the building’s square footage, and bill it monthly along with base rent. Most leases require an annual reconciliation — actual costs compared to what was collected, with tenants billed for any shortfall or credited for the overage.

What’s Usually Included in CAM

• Parking lot maintenance, striping, and lighting
• Landscaping and debris removal
• Common area cleaning and utilities
• Property management fees (often capped in the lease)
• Insurance on common areas
• Minor repairs to shared building systems

What to Watch For as a Tenant

Not every expense belongs in CAM. Some leases fold in capital improvements, structural repairs, or uncapped management fees — worth negotiating out before signing. Ask for a CAM cap (often 3–5% year-over-year), audit rights on reconciliations, and a clear list of exclusions.

CAM vs. NNN

CAM is one of the three “nets” in a Triple Net (NNN) lease, alongside property taxes and insurance. Read more about how NNN leases work →

Are you reviewing a lease with CAM charges you don’t understand? Our team at NAI Elrod Group can help you read the fine print before you sign.

Contact NAI Elrod Group at 678-859-6110 or brian@naielrod.com