CAM (Common Area Maintenance) Clause
The lease provision that passes shopping center common area costs to tenants, and how CAM creep adds up over a 10-year term.
- Annual cap on CAM increases (typical: 5%)
- Inclusions and exclusions list
- Capital improvement amortization treatment
- Administrative fee percentage
If this clause already feels aggressive in isolation, upload the full contract and see how it combines with payment terms, liabilities, and exit rights.
Analyze My ContractWhat this clause actually does
CAM (common area maintenance) clauses pass costs of maintaining common areas (parking, landscaping, lobby, security) from landlord to tenant. CAM is in addition to base rent. Caps, exclusions, and audit rights determine whether CAM is reasonable or runs uncontrolled.
Why people get burned by this clause
Uncapped CAM with broad inclusions can grow 8% to 12% per year. On a 10-year lease, base rent + CAM at year 10 can be 50% higher than year 1.
What should make you slow down
- No annual cap on CAM increases
- Capital improvements included in CAM (should be amortized over useful life)
- Administrative fees over 15% of CAM costs
- No tenant audit right
- Landlord defines CAM scope unilaterally
Where you usually see it
- Commercial leases
- Lease addenda and exhibits
What the platform checks in the live contract
- Annual cap on CAM increases (typical: 5%)
- Inclusions and exclusions list
- Capital improvement amortization treatment
- Administrative fee percentage
- Tenant audit rights and look-back period
What stronger language usually looks like
- 5% annual cap on controllable CAM
- Capital improvements amortized over useful life
- Administrative fee capped at 10%
- Annual tenant audit right with 3-year look-back
- Specific exclusions for landlord-caused costs
CAM creep is the largest hidden cost in commercial leases. Caps, audit rights, and capital improvement treatment are the three places to fight.
See how this clause behaves in the real contract.
The clause library gives you judgment. The full review shows how this clause combines with the rest of the agreement, then quotes the exact language, scores the risk, and explains what to push on next.