Commercial leases usually a multi-year commitment, which means it is critical that people ensure that initially agreed upon terms are appropriate and fair. The base rent charge is only one consideration. Maintenance is another concern. Some commercial tenants are responsible for all maintenance or repairs. Others must pay their landlords additional fees every month to cover maintenance costs.
For those renting a storefront in a strip mall or an office and a shared facility, maintenance expenses for shared amenities are a recurring monthly obligation. Common area maintenance (CAM) fees can significantly increase the facility expenses of a company. As such, those preparing to sign a new commercial lease likely need support to negotiate the CAM fee terms included in a commercial lease.
CAM fees can be unpredictable
Sometimes, landlords charge a flat rate each month for the maintenance of parking lots, bathrooms another shared facilities. Other times, landlords may simply make each tenant responsible for a certain percentage of their overall monthly maintenance costs.
In that second scenario, CAM fees can be highly unpredictable. They may also not accurately reflect the wear and tear produced by individual tenants.
Those negotiating terms for a commercial lease maybe able to reduce the percentage of responsibility they accept. They could also make arrangements with the landlord to lock in a specific amount per month to ensure their costs are predictable.
Reviewing a lease with a commercial real estate lawyer and having them assist with negotiations can take some of the risk out of signing a long-term commercial lease. CAM fees are one of several lease conditions that may be negotiable for business tenants.