CAM Charges Calculator + Reconciliation Guide (2026)

CAM charges in 2026 typically run $4 to $9 per square foot per year on Class A office, with a 10 to 15% management fee on top. The 2025 NYC office lease audit sample (n=212) found average overcharges of 11.4% per Stratafolio. Audit your reconciliation annually within the 60 to 90 day window.

TL;DR

CAM (common area maintenance) is the tenant's pro-rata share of shared-space upkeep: lobby, hallways, restrooms, parking lot, landscaping, and a management fee. It's a separate pass-through from the three "nets" of NNN but is often bundled under "Operating Expenses" in the lease. Standard CAM is $4 to $9/SF/yr for Class A office and $2 to $5/SF/yr for retail, with management fees calculated on CAM costs (not gross rent) at 10 to 15% in well-negotiated leases. The single most common overcharge is a management fee calculated on gross rent, inflating the fee 4 to 5x.

What CAM covers

Per Stratafolio's CAM definition and LoopNet's CAM guide:

• Common area utilities: lobby and hallway lighting, restroom water, common-area HVAC
• Janitorial and cleaning: shared spaces; tenant interiors are usually tenant-paid separately
• Landscaping and snow removal
• Parking lot maintenance: striping, sealing, lighting
• Common-area repairs and maintenance
• Property management fee: 10 to 15% of CAM costs in well-negotiated leases
• Security: shared-building security, if applicable

CAM is computed on a pro-rata share basis: tenant's pro-rata = tenant RSF / building RSF. For a 5,000 SF tenant in a 100,000 SF building with $700K annual CAM expenses, CAM bill = 5% × $700K = $35,000/yr, or $7/SF.

CAM benchmarks by property type and metro (Q1 2026)

Sources for benchmarks: BOMA Experience Exchange Report, Stratafolio CAM benchmarks 2025, LoopNet CAM explainer.

The five most common CAM overcharges

Across the Stratafolio 2025 NYC office audit sample (n=212), the five recurring overcharge patterns:

1. Management fee on gross rent instead of CAM costs. A 5% management fee on gross rent (which includes base rent) inflates the fee by 4 to 5x compared to a 10 to 15% fee on CAM costs only. The overcharge can run $2 to $4/SF/yr for Class A office.
2. Capital improvements miscoded as CAM. A new HVAC, parking lot resurfacing, or roof replacement gets coded as "repairs and maintenance" rather than capital expenditure. Standard CAM excludes capital improvements unless the lease specifically permits amortization over useful life.
3. Admin overhead in excess of cap. Some landlords add a 5% admin overhead on top of the management fee. Total admin/management load above 15% of CAM costs is overcharge territory.
4. Affiliate-vendor pricing markup. The landlord's affiliate company provides janitorial or landscaping at above-market rates. Lease should require "competitive bid" or "market rate" pricing language.
5. Common-area amenity inflation. Landlord upgrades the lobby coffee bar to a barista program; the cost gets pushed through CAM. Negotiate an exclusion for "discretionary amenity upgrades not approved by tenant majority".

CAM reconciliation: the annual ritual

Every NNN and modified-gross lease has a CAM reconciliation cycle:

1. Estimate phase (start of year): landlord estimates CAM for the upcoming year and bills tenant monthly at 1/12 of estimate.
2. Year-end reconciliation (typically Q1 of following year): landlord computes actual CAM and issues a reconciliation statement. Tenant either owes the delta (under-estimate) or gets a credit (over-estimate).
3. Audit window (60 to 90 days from reconciliation): tenant has the right to audit landlord's books and dispute line items.

For a tactical guide to CAM audits, see CAM reconciliation: how to audit your annual CAM charges.

How to calculate your CAM exposure before signing

Three numbers to demand from the landlord before LOI:

1. Last 3 years of actual CAM expenses (per SF). Lets you compute the year-over-year escalation rate. If it's running 6%+ annually, demand a cap.
2. Building's BOMA EER benchmark. The BOMA Experience Exchange Report publishes operating expense benchmarks by building type and region. Compare the proposed CAM to the regional benchmark. If 20%+ above, ask why.
3. CAM definition (the "Operating Expense" definition in the lease). Read the inclusions and exclusions. The boilerplate Operating Expense definition runs 3 to 5 pages and is where overcharges hide.

Negotiating CAM: the seven asks

In priority order:

1. Cap on controllable expenses at 5% annually. Excludes uncontrollable (property tax, insurance) but caps everything else.
2. Capital improvements excluded unless amortized over useful life. A new HVAC amortized over 20 years is acceptable; eaten in year 1 is not.
3. Management fee on CAM costs, capped at 15%. Not on gross rent.
4. Admin overhead capped at 5% (in addition to management fee).
5. Audit rights with 90-day window from reconciliation.
6. Base year reset on renewal.
7. Exclusions list for affiliate-vendor markup, discretionary amenity upgrades, and reserves for future capex.

Frequently asked questions

What's the difference between NNN and CAM?

NNN (triple net) covers three pass-throughs: property tax, building insurance, and structural maintenance. CAM (common area maintenance) is technically a fourth bucket covering shared-space upkeep. Many leases bundle CAM under "Operating Expenses" alongside NNN. Always read the Operating Expense definition.

What's a typical CAM charge?

For Class A office in major US metros in 2026: $4 to $9/SF/yr. For Class B office: $3 to $5/SF/yr. For retail strip center: $2 to $5/SF/yr. For industrial/warehouse: $0.50 to $1.50/SF/yr. Add a 10 to 15% management fee on CAM costs in well-negotiated leases.

Can I audit my CAM charges?

Yes if your lease has an audit rights clause, typically a 60 to 90 day window from receipt of the year-end reconciliation. Without this clause, you can't formally dispute. Per Stratafolio, the average NYC office lease overcharge in 2025 was 11.4%.

Are CAM charges capped?

Only if you negotiate a cap. Standard CAM language has no cap. Push for a 5% annual cap on controllable expenses (excludes property tax and insurance, which are uncontrollable but pass through anyway). 7% is the negotiating ceiling.

What's the deadline to dispute a CAM reconciliation?

Most commercial leases give the tenant 60 to 90 days from receipt of the year-end CAM reconciliation to formally object in writing. Check your lease's audit-rights clause for the specific window.

Can the landlord pass capital improvements through CAM?

Standard CAM excludes capital improvements unless the lease specifically permits amortization of capital costs (such as a new HVAC) over their useful life. A well-negotiated lease caps capital pass-throughs at amortized cost over the useful life, not the full cost in year of installation.

What CAM line items are most often overcharged?

Per the 2025 Stratafolio audit sample: management fees calculated on gross rent rather than CAM costs, capital expenses miscoded as repairs, and admin overhead in excess of the typical 10 to 15% cap. Audit annually if you have the right.

Do CAM charges apply in a full-service gross lease?

No. In full-service gross, the landlord absorbs all operating costs into base rent. The tenant pays a single rent number with no separate CAM/NNN line. The trade-off: full-service gross base rent is higher than NNN base rent because it loads operating expenses into the headline.

Related calculators

• NNN lease calculator for the broader pass-through math
• Tenant improvement allowance calculator
• Pillar: All-in commercial lease cost calculator

Related guides

• CAM reconciliation: how to audit your annual CAM charges
• Commercial lease rent escalation clause guide
• Commercial lease types: NNN vs Gross vs Modified Gross

Sources

1. Stratafolio CAM Charges in Commercial Lease Management accessed 2026-05-02
2. LoopNet CAM Charges Explained accessed 2026-05-02
3. BOMA Experience Exchange Report accessed 2026-05-02

Not financial or legal advice. Estimates based on publicly available market data and broker reports. Commercial real-estate is highly local and deal-specific. Consult a licensed commercial real-estate broker and a real-estate attorney before signing any lease.

This is a syndicated post. Original article + interactive calculator: https://llcformationcost.com/cam-charges-calculator//