CAM Estimate Calculator
Estimate common area maintenance charges, pro rata shares, management fees, and CAM cap impacts. Free, instant, no login required.
How CAM Charges Are Calculated
Common Area Maintenance (CAM) charges are calculated by determining a tenant's pro rata share of the total property operating expenses. The pro rata share is the ratio of the tenant's leased square footage to the total gross leasable area (GLA) of the property.
For example, if a tenant leases 5,000 SF in a 50,000 SF building, their pro rata share is 10%. If total CAM expenses are $200,000 annually, the tenant's share would be $20,000 per year, or approximately $1,667 per month.
Common CAM Exclusions
Well-negotiated leases include CAM exclusions that protect tenants from unreasonable charges. Common exclusions include capital expenditures (roof replacement, structural repairs), costs related to vacant space, leasing commissions, and landlord's income taxes.
Other typical exclusions are costs covered by insurance proceeds, expenses for tenant-specific improvements, depreciation, and any costs resulting from the landlord's negligence. Always review the CAM exclusion clause carefully before signing a lease.
Understanding CAM Caps
A CAM cap limits how much CAM charges can increase from year to year, typically expressed as a percentage. For example, a 5% CAM cap means your CAM charges cannot increase more than 5% over the prior year's amount.
CAM caps come in two forms: cumulative and non-cumulative. A cumulative cap allows unused cap room to carry over, while a non-cumulative cap resets each year. Non-cumulative caps provide better tenant protection and are generally preferred in lease negotiations.
When is CAM Reconciliation Done?
CAM reconciliation typically occurs within 90 to 120 days after the end of the calendar year or the landlord's fiscal year. During reconciliation, the landlord compares estimated CAM charges collected from tenants against actual operating expenses.
If estimated payments exceeded actual costs, the tenant receives a credit or refund. If actual costs exceeded estimates, the tenant owes an additional payment. Tenants should always review reconciliation statements carefully and exercise any audit rights provided in their lease.
Need to reconcile CAM for your entire property?
CREagentic's CAM Reconciliation Agent reads your GL, leases, and tax bills automatically. Start free.