When reviewing a commercial lease in Calgary, many tenants ask: “What is CAM, and what building services are actually included in my rent?” Understanding Common Area Maintenance (CAM) charges is essential to budgeting properly and avoiding surprises when it comes time to pay additional operating costs.
1. What Is CAM (Common Area Maintenance)?
CAM stands for Common Area Maintenance and refers to fees that tenants pay on top of base rent to help cover the cost of maintaining and operating the shared areas of a property. These fees are especially common in multi-tenant buildings like shopping plazas, office towers, and industrial complexes.
2. What Do CAM Charges Typically Cover?
CAM fees are used to maintain the shared components of a property. They often include:
- Hallways, lobbies, and elevators
- Parking lots and garages
- Landscaping and snow removal
- Exterior lighting and signage
- Janitorial services for common areas
- Building security and alarm systems
- Pest control
- Roof and exterior building repairs
- Administrative and management fees
3. How Are CAM Fees Calculated?
CAM charges are typically calculated based on a tenant’s proportionate share of the total rentable square footage of the property. At the start of the year, property managers estimate CAM expenses and bill tenants monthly. At year-end, actual costs are reconciled. If a tenant overpaid, they receive a credit; if underpaid, they may receive a catch-up invoice.
4. What Services Are Included in a Commercial Lease?
While base rent typically only covers the exclusive use of your unit, CAM charges or lease clauses may include:
- Cleaning and janitorial services (shared areas only)
- Landscaping and grounds maintenance
- Snow and ice removal
- Exterior lighting and signage maintenance
- HVAC maintenance in common areas (tenant-specific HVAC may be separate)
- Repairs to building exteriors, windows, and roof
- Fire alarm and security systems (shared)
- Pest control
Note: Utilities for common areas are generally included in CAM. However, utilities for tenant spaces may either be billed directly to the tenant or included in CAM, depending on how the lease is structured. Always clarify this with the landlord or your broker.
5. Controllable vs. Uncontrollable CAM Charges
Understanding the difference between controllable and uncontrollable CAM charges is important when negotiating your lease:
- Controllable CAM charges: Services like landscaping, janitorial work, and routine maintenance. These can sometimes be capped.
- Uncontrollable CAM charges: Costs like property taxes, snow removal, and utility rate increases. These are influenced by external factors and typically excluded from caps.
6. Who Handles Repairs and Maintenance?
- Landlords are typically responsible for maintenance and repairs of shared/common areas, funded through CAM fees.
- Tenants are generally responsible for maintaining and repairing the interior of their leased premises. However, in some net leases or depending on the lease agreement, tenants may also be responsible for additional components, such as HVAC systems, windows, or signage.
Always review your lease carefully to understand which maintenance obligations are yours and which fall under CAM.
7. Are CAM Charges Negotiable?
Yes—CAM charges and the list of included services can vary by landlord and property type. Tenants may:
- Negotiate for more precise definitions of what’s included
- Request caps on controllable CAM increases
- Ask for detailed CAM breakdowns in lease proposals
Because CAM fees can add significantly to your total occupancy cost, clarity and transparency are key.
Summary Table: Typical CAM-Included Services
| Service/Expense | Typically Included in CAM? | Notes |
|---|---|---|
| Cleaning (common areas) | Yes | Price is often determined by market rates fo services |
| Landscaping | Yes | Price is often determined by market rates fo services |
| Snow Removal | Yes | Price is often determined by market rates fo services |
| Security | Yes | Price is often determined by market rates fo services |
| Lighting (common areas) | Yes | Price is often determined by market rates fo services |
| HVAC (common areas) | Yes | Tenant HVAC sometimes separate |
| Administrative Fees | Sometimes | Typically unnegotiable |
| Utilities (common) | Yes | Tenant utilities may be separate or included |
| Repairs (common areas) | Yes | Price is often determined by market rates fo services |
| Pest Control | Yes | Price is often determined by market rates fo services |
Final Thoughts
CAM charges are a key part of commercial leasing in Calgary, but they can vary greatly between properties and lease types. Whether you’re leasing office space, a retail unit, or a warehouse, it’s essential to understand what’s included in your rent — and what isn’t.
Before signing a Calgary commercial lease, review the CAM clause carefully, ask for a detailed breakdown, and work with a broker to negotiate fair and transparent terms.
Need help navigating CAM charges or securing the right commercial lease? Contact the team at Leaseco Realty today for guidance tailored to you, your business, and long-term goals.
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