Common Area
The shared portions of a commercial property accessible to all tenants and visitors: lobbies, hallways, parking lots, restrooms, elevators, and landscaped areas. Only legitimate common area expenses should be included in the CAM pool.
Firm Impact
Misclassification of non-common-area expenses into the CAM pool, such as maintenance for a single-tenant exclusive area billed to all tenants, is one of the 20 detection rules CAMAudit runs. It is more common in multi-tenant office and retail settings than landlords typically acknowledge.
How This Gets Abused
A landlord included HVAC maintenance for anchor tenant exclusive areas in the common area pool and allocated it across all smaller tenants via pro-rata share. The anchor tenant did not contribute. Smaller tenants subsidized a $40,000 annual HVAC bill for space they had no access to.
Practitioner Note
Request the property map or floor plan alongside the reconciliation. Verify that each expense category in the CAM pool traces to areas defined as common in the lease. Any maintenance or service that primarily benefits a single tenant's space should be excluded.
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CAMAudit runs 20 forensic detection rules in under 15 minutes. White-label report delivery included for partner firms.
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