Understanding Common Area Maintenance Costs in a New Hampshire Commercial Lease

CAM charges relate to the maintenance of the common area of a building, including a mixed use development, apartment building, or condominium complex.  The CAM charges may cover costs associated with the operation of common areas, including cleaning costs and repair.  Utilities that are billed for the entire building may be allocated on a pro rata basis to each tenant.  It typically is a fee that is assessed against each business tenant as part of the monthly lease payment, but it may be charged on a quarterly or annual basis.  It is important for this cost to be factored into the economic analysis of whether a specific commercial property is going to be affordable under a business plan.  Despite the fact that this is presented as a fixed cost by the landlord, there always is the possibility of negotiating the amount of the CAM.

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