What are CAM charges?

A tenant's share of the costs of running a building's shared areas, such as cleaning, landscaping and parking. The lease defines what is included.

What is a CAM reconciliation?

The year-end comparison of the estimates a tenant paid with its actual share of costs. The difference becomes a bill or a credit.

Is CAM the same as NNN?

No. In a triple-net lease the tenant pays its share of taxes, insurance and maintenance. CAM is usually the maintenance part.

Can a tenant dispute CAM charges?

Often yes, within the time the lease allows. Read the audit clause, and speak to counsel if the amounts are large.

Free tool and guide

CAM charges and reconciliation a tenant's share, worked out

CAM charges pass a building's shared costs on to its tenants, and each year's estimates get reconciled to the actual costs. Enter the figures below to see the share, the gross-up and the balance.

Use the CAM reconciliation calculator Read the guide

CAM, or common area maintenance, charges are a tenant's share of a building's shared operating costs, such as cleaning, landscaping and parking lot upkeep. Tenants usually pay estimates during the year, and the landlord reconciles them with actual costs afterward.

CAM reconciliation calculator

Enter the areas, the cost pool, occupancy and estimates paid to get the tenant's share, the gross-up and the year-end balance. It runs in your browser: your numbers are not uploaded, saved or tracked, and there is no sign-up.

Showing invented example numbers

Tenant's pro rata share: 10.00%
Pool after gross-up: $537,500
Tenant's share of the pool: $53,750; $5.38 per SF
Tenant owes at reconciliation: $1,750; Share of the pool, less estimates paid

Worth a look

Gross-up raises the variable costs from $200,000 to $237,500. Check that the lease allows it, and on which costs.

Arithmetic only, with no market benchmarks. This is not a loan quote or advice.

How a CAM charge is calculated

Pro rata share = tenant's area / building's area. Tenant's CAM = share x CAM pool. Year-end balance = tenant's CAM - estimates paid. If the balance is positive the tenant owes it, and if negative the tenant is due a credit. The lease controls every step, including how area is measured.

What gross-up does

When a building is partly empty, variable costs such as janitorial are lower than they would be if it were full. Gross-up raises those costs to what they would be at a stated occupancy, so occupied tenants pay a fair share, and not less. In the example here, 10.00% of a pool grossed up to $537,500 is $53,750, leaving $1,750 due.

Gross-up should apply only to costs that truly vary with occupancy, and it should not let a landlord collect more than it spent overall. This calculator grosses up the variable pool only, so split your costs accordingly.

What CAM charges usually cover

Commonly in the pool	Commonly negotiated or excluded
Cleaning and janitorial for shared areas	Capital replacements, or only their amortized share
Landscaping and snow removal	Management fees above a stated percentage
Parking lot upkeep and lighting	Costs for other tenants' spaces
Security and shared utilities	Debt service and ownership costs
Property insurance and taxes, often billed separately	Penalties and costs from the landlord's own breach

There is no universal list. Your lease controls what counts, so read its operating expense definition and exclusions.

How to check a reconciliation

Check the area. Confirm both the tenant's area and the denominator, and that the denominator did not shrink.
Check the caps. Many leases cap controllable costs, or the yearly increase.
Check the admin fee. Fees layered on top of a management fee can double count.
Compare it with last year. Ask about any line that jumped.
Know your audit right. Many leases give a limited time to dispute or audit. Diarize it.

Frequently asked

What are CAM charges?: A tenant's share of the costs of running a building's shared areas, such as cleaning, landscaping and parking. The lease defines what is included.
What is a CAM reconciliation?: The year-end comparison of the estimates a tenant paid with its actual share of costs. The difference becomes a bill or a credit.
Is CAM the same as NNN?: No. In a triple-net lease the tenant pays its share of taxes, insurance and maintenance. CAM is usually the maintenance part.
Can a tenant dispute CAM charges?: Often yes, within the time the lease allows. Read the audit clause, and speak to counsel if the amounts are large.

Pacific Software Ventures built this tool and guide, and sells AI consulting and training to commercial real estate firms. This is general education, not investment, legal or tax advice.

Next step

Doing this on every deal? Let AI do the first read.

Ten minutes. An honest read on where AI would save your team time, and which option fits, including when it is not us.

Get your free AI assessment Try a free Institute lesson