September 17, 2025 • General
If you’ve ever looked into leasing space in a shopping center, office building, or industrial park, you’ve probably heard the term CAM fees. These charges can be confusing, but they’re an important part of most commercial leases. Understanding how they work helps both landlords and tenants budget properly and avoid surprises.
What Are CAM Fees?
CAM stands for Common Area Maintenance. These fees cover the costs of keeping up the areas everyone shares—things like parking lots, landscaping, hallways, restrooms, elevators, or lighting. Instead of one tenant covering all of these expenses, the costs are spread out across everyone in the property.
What Do CAM Fees Typically Cover?
Every lease is a little different, but CAM fees usually include:
- Parking lot upkeep (repaving, striping, lighting, snow removal)
- Landscaping and exterior cleaning
- Utilities for shared spaces
- Security systems or staff
- Repairs and general maintenance for the property’s common areas
Some landlords also include administrative or property management costs in CAM, so it’s important to read the fine print.
How Are CAM Fees Calculated?
CAM fees are usually based on your share of the building’s total space. For example, if you lease 2,000 square feet in a 20,000-square-foot shopping center, you’ll typically be responsible for 10% of the CAM expenses.
There are two main ways these fees are billed:
- Fixed CAM: A flat fee built into your monthly rent.
- Variable CAM: Costs are billed based on actual expenses, with an annual “true-up” to make sure everything lines up.
Why Tenants Should Pay Attention
CAM fees can add up. A space with low rent but high CAM charges may cost more in the long run than a space with slightly higher rent and lower CAM. Before signing, tenants should always ask for an estimate of CAM fees and understand how they’re calculated.
Why Landlords Depend on CAM
For property owners, CAM fees are a way to keep the property well-maintained without absorbing all the costs themselves. When managed well, CAM keeps tenants happy, preserves property value, and ensures the property remains attractive to new businesses.
Final Thoughts
CAM fees are a normal part of commercial real estate leases, but they shouldn’t be a mystery. Tenants should know exactly what they’re paying for, and landlords should be transparent in how fees are structured.
At Wellborn Real Estate, we help both tenants and property owners in Amarillo understand and negotiate CAM fees so leases are fair, predictable, and beneficial for everyone involved.