A CAM structure where the tenant pays a predetermined, fixed amount for common area maintenance that does not vary based on actual expenses. Fixed CAM eliminates reconciliation uncertainty for tenants.
Fixed CAM leases set the CAM amount at lease execution, typically escalating annually at a fixed percentage. The landlord bears the risk of actual costs exceeding the fixed amount.
A landlord converted a fixed CAM lease to a variable CAM structure mid-lease through an amendment, claiming it was an 'administrative update.' The tenant signed without comparing the financial impact - their annual CAM payments increased by $28,000 in the first year post-conversion.
Fixed CAM is generally preferable for budget certainty. If your landlord proposes converting to variable CAM, treat it as a material lease amendment requiring full financial analysis.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
