Also typically assessed to tenants in CAM fees are costs associated with parking lot maintenance (including lighting and landscaping), and sidewalks.If the type of fees you are being asked to pay are non-negotiable, make sure your lease specifically permits you to review the landlord’s bills.
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more important, since large retailers often dispute CAM fees or pay only a percentage …
the CFO must know how to account for the difference, or CAM slippage.”Before you attempt to negotiate CAM or Administrative Fees, be sure that you understand what they are.
If CAM fees are a complicated issue for CFO’s you better go in prepared!
Because the condition of certain common areas has a direct affect on tenants, fees associated with the costs of maintenance and repair of hallways, elevators, stairwells, lobbies, and common area restrooms are fairly standard in CAM fees.
Filed In: Leasing Commercial Office, Retail and Industrial Spaces The larger the commercial space you rent, the more likely you will be able to negotiate CAM (Common Area Maintenance) fees and any associated administrative fees.
However, no matter how small the space is, never accept the terms of any lease without asking for a better deal.
In a cautionary statement about the difficulty of breaking into the commercial real estate industry, reporter, Laura De Mars, clearly indicates that even real estate professionals may have a hard time understanding the complexities of CAM fees; “The complexity of the industry makes it tough to break into…” De Mars further states: “At shopping centers, for instance, tenants usually pay for the upkeep of the building through a common-area maintenance (CAM) fee.
While a CFO of a property-management firm doesn't directly manage the tenants, he still needs to understand how those fees are collected …
You should also negotiate how much CAM fees can increase each year – putting a maximum amount or percentage.