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CAM (Common Area Maintenance)

Last updated: May 2026

CAM charges means common area maintenance charges passed through to tenants for shared property costs such as parking lots, lobbies, landscaping, lighting, security, trash, and other spaces used by multiple occupants. CAM rent is separate from base rent in many NNN leases, billed as a monthly estimate, and corrected through an annual reconciliation.

Firm impact

Every NNN and modified-gross tenant your firm advises may pay CAM charges in addition to base rent. The annual reconciliation is the billing document your team audits to test the monthly estimate against actual costs, convert charges to a per square foot view, recover overcharges, and deliver a defensible findings report branded under your firm name.

How this gets abused

Landlords routinely include capital expenditures, management fees above the lease cap, above-grade salaries, and costs barred by lease exclusions in the CAM pool. The tenant sees one line item, such as 'CAM rent: ,000' with no per square foot breakdown, so the overcharge never surfaces without a forensic review.

Practitioner note

When onboarding a new client, request the CAM definition, lease exclusions, pro-rata share clause, monthly estimate history, and annual reconciliation statement before reviewing the expense pool. The breadth of the definition determines which common area maintenance charges are recoverable and which should be removed from the bill.

Related terms

CAM ReconciliationCAM CapPro-Rata ShareOperating ExpensesAudit Rights

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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or 'binding and conclusive' provisions, and on applicable state law.

State statute of limitations periods apply to written contracts and range from 3 to 10 years. Your actual lookback window may be shorter based on your lease.

CAMAudit is a document analysis platform, not a law firm, and nothing on this site constitutes legal advice. Consult a licensed real estate attorney before initiating any dispute or legal proceeding.

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