What does the term "CAM" stand for in commercial real estate?

The term "CAM" in commercial real estate specifically refers to "Common Area Maintenance." This concept encompasses the costs associated with maintaining and operating the communal areas of a commercial property, such as lobbies, hallways, elevators, landscaping, and parking lots. Property owners typically pass these costs onto tenants as a part of their lease agreements. Common Area Maintenance is crucial for maintaining the overall appeal and functionality of a property, as it ensures that shared spaces are kept clean, safe, and well-maintained, which can enhance tenant satisfaction and potentially increase property value.

Understanding CAM is essential for both property managers and tenants, as it directly impacts operational expenses and the financial aspects of leasing commercial space. This term is fundamental in commercial real estate management, as it helps allocate costs effectively and promotes transparency between landlords and tenants regarding shared responsibilities.