Net lease glossary
CAM (Common Area Maintenance)
Charges paid by tenants for operating and maintaining shared areas such as parking lots, landscaping, and lighting.
Common area maintenance charges cover costs of shared areas in a multi-tenant property or a shopping center: parking lot repair, snow removal, lighting, landscaping, security, and related management fees. Tenants usually pay their pro rata share. In single-tenant net lease, the tenant often maintains the parcel directly, but outparcel tenants may still owe CAM to the shopping center through a reciprocal easement agreement. Caps, exclusions, and audit rights are frequent negotiation points.