Understanding Commercial Real Estate Management - Common Maintenance Area And Associated Charges - PowerPoint PPT Presentation

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Understanding Commercial Real Estate Management - Common Maintenance Area And Associated Charges

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Every tenant within the premise of the commercial property owns the common maintenance area equally. Commercial real estate management usually builds an inclusive management structure which charges each tenant for the maintenance and development of the common area. – PowerPoint PPT presentation

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Title: Understanding Commercial Real Estate Management - Common Maintenance Area And Associated Charges


1
Understanding Commercial Real Estate Management -
Common Maintenance Area And Associated Charges
2
What is Common Maintenance Area?
  • The common area in a commercial property premise
    refers to the set of all those physical spaces
    which are accessible to all the tenants of the
    property, the landlord and also the invitees of
    the landlord and any of the tenants. It generally
    includes the lobbies, corridors, staircase,
    parking lots, washrooms, elevators etc.

3
Who pays for it?
  • Every tenant within the premise of the commercial
    property owns the common maintenance area
    equally. Commercial real estate management
    usually builds an inclusive management structure
    which charges each tenant for the maintenance and
    development of the common area.

4
How do you pay for it?Here are five things you
need to know in order to understand the process
of CAM payment
  • Common maintenance area charges form a part of
    the total charges levied upon a tenant in
    accordance with the Triple Net Lease. A
    commercial property for lease is bounded by a
    payment structure in which the tenant pays the
    proportionate share of all common charges along
    with the basic rent.
  • The CAM charges are determined during the
    signing of the lease documents between the
    landlord and the tenants. The landlord tries to
    include most of the operational costs into the
    CAM charges, whereas the tenants try to turn the
    direction of negotiation otherwise.

5
How do you pay for it?Here are five things you
need to know in order to understand the process
of CAM payment
  • The uncontrollable charges include the security
    expenses and the costs of basic utilities. The
    remaining charges, like lighting, landscaping
    etc., termed as controllable are subject to the
    negotiation during the preparation of the lease
    document.
  • In case of a commercial property with multiple
    tenants, the property owner tries to standardize
    the charges among all the tenants. The CAM is
    divided among the tenants in proportion to the
    tenants rented area to the total rent-able area
    in the property.

6
Commercial real estate services and the CAM
  • Commercial real estate services manage the common
    maintenance area as well its charges on behalf of
    a property owner. They also oversee the auditing
    and reporting of the common maintenance charges,
    and avoid any confusion which might arise between
    the landlord and the tenant over CAM charges.

7
  • Contact us for more information on
  • Commercial real estate management and Commercial
    property for lease
  • Connect us through http//madisonprop.com
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