This, in turn, makes CAM part of what is called a Triple Net (NNN) Lease.Ĭommon Area Maintenance (CAM) expenses are fees paid by tenants to landlords to help cover costs associated with overhead and operating expenses for common areas. What is CAM Expense?Ĭommon area maintenance is one of the three main components that make up operating expenses, the other two being insurance and property taxes. Gross Lease: a type of Lease where the tenant pays rent all-inclusive of operating expenses. Triple Net (NNN): a net lease where the tenant pays base rent plus pays for all operating expensesĪbsolute Triple Net: a type of triple net lease where the tenant pays base rent, all operating expenses, plus pays a portion or all of the capital expenditures to maintain the condition property Single Net (N): a net lease where the tenant pays base rent plus pays for one of the operating expense items such as common area maintenance (CAM), insurance, or property taxesĭouble Net (NN): a net lease where the tenant pays base rent plus pays for property insurance and property taxes Net leases contrast with Gross Leases, wherein the landlord pays for all operating expenses. Expenses may be billed directly to the tenant, or the expenses may be paid by the landlord and reimbursed by the tenant. Types of net leases include single net, double net, triple net, and absolute triple net.
TENANT PRO 6 CONSULTING PRO
A commercial lease where the tenant pays base rent plus pays for its pro rata share of some or all operating expenses related to the tenant’s occupancy of the space.