In many Commercial Leases, Tenants are responsible for paying their proportionate share of Common Area Maintenance, often abbreviated as “CAM.” Common Area Maintenance is often defined in the lease agreement and includes items such as security, snow and ice removal, bathroom maintenance, utilities for common areas (such as hallways, stairwells, and exterior areas), lobby maintenance, parking lot maintenance, roof maintenance, and other routine costs and maintenance items.
Common Area Maintenance typically does not include capital improvements, such as a new roof. Depending on the Building, Common Area Maintenance may be divided among the Tenants based on their proportionate share, or it may be based on increases over a base year. Each building is different, and each lease agreement is different.
*Thank you for taking the time to read this article. This article is part of our “Commercial Leasing for Non-Lawyers,” a Blog Series on Commercial Leasing. Other aspects of commercial leasing transactions in New York are discussed in other Parts of this series.
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