In the current economy, commercial landlords and tenants alike look for ways to cut costs and maximize revenue. Historically, disputes over common area maintenance costs (or “CAM”) in commercial leases were considered more trouble than they were worth, but CAM charges are now a significant percentage of total occupancy costs and should not be ignored. In any given lease, CAM costs may include security, real estate taxes, capital improvements, signage, parking lot repair and maintenance, snow removal, and landscaping for the common area of a shopping center, office building or mall. In many cases, neither the landlord nor the tenant closely monitors CAM. CAM charges deserve a closer look to ensure that both sides receive what they are due under the lease. From the tenant’s perspective, informal negotiation over the propriety or accuracy of CAM charges can increase the bottom line with minimal effort. Where CAM charges are sizeable, litigation may even be appropriate to collect overpayments and to ensure that improper charges do not continue.

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