Lease Term: Understanding the CAM Fee

It’s important to understand exactly what you’re paying for when you sign any commercial lease. Common area maintenance fees (CAM fees) are fairly common in commercial leases, but their terms can vary considerably. Be sure to ask questions about what’s included in all fees that are padded into rent under the terms of your lease, and find out how those fees might increase each year. Some leases might cap rent increases to a reasonable percentage, but CAM fees might go up at a different percentage rate.

Knowing what you’ll be responsible for paying during each year of your lease will help you make better long-term decisions about whether a particular space will still be affordable in subsequent years, even if it seems like a good fit now.

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