Licensed childcare facilities and early education centers operating in strip centers, standalone buildings, and purpose-built educational campuses. High liability insurance requirements and outdoor play area maintenance create specific CAM exposure. Annual CAM exposure for this tenant type ranges up to $20,000–$80,000. CamAudit runs 12 forensic detection rules specific to your lease structure in under five minutes.
Typical Lease Structure
Triple Net (NNN)
Avg. Locations
1–50
Annual CAM Exposure
$20,000–$80,000
Triple Net (NNN), tenant pays base rent, property taxes, insurance, and CAM. Exterior play areas and fencing are often treated as tenant improvements but their maintenance costs can be incorrectly allocated to the CAM pool.
Landlords pass through extreme property insurance premium increases citing the perceived liability risk of childcare operations. Security system and camera infrastructure maintenance is billed as common area expense. Playground equipment maintenance and inspection costs are sometimes included in general CAM.
Watch For This Trigger
Landlord passes through a 40–50% insurance premium hike citing the childcare facility's perceived liability risk, with no documentation of an actual underwriter risk reclassification.
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Start Free AuditChildcare tenants in Tysons Corner-style lifestyle center leases have disputed disproportionate insurance pass-throughs by requiring the landlord to produce the actual insurance policy and premium invoice, documenting that the premium increase was a building-wide market adjustment unrelated to childcare operations.
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Scan My Lease NowThis 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.