What Are CAM Fees in a Southern California Commercial Lease?

When negotiating or reviewing a commercial lease in Southern California, one of the most misunderstood terms is CAM fees, short for Common Area Maintenance fees. These costs can significantly impact your total occupancy expenses, yet many tenants sign leases without fully understanding how CAM charges are calculated, billed, or increased over time.

1. Definition of CAM Fees

CAM fees are the additional charges you pay — on top of your base rent — for the upkeep, repair, and operation of the property’s shared spaces. In most multi-tenant commercial properties, such as office buildings, retail plazas, or industrial complexes, landlords pass these costs on to tenants proportionally.

Typical CAM fee expenses may include:

• Landscaping and groundskeeping

• Parking lot maintenance (repaving, striping, cleaning)

• Lighting for exterior and shared spaces

• Security services

• Janitorial services for common areas

• Repairs and maintenance for shared restrooms, lobbies, or hallways

• Elevator upkeep (if applicable)

2. How CAM Fees Are Calculated

CAM fees are usually calculated based on your pro-rata share of the property’s total leasable space.

Example Calculation:

• A Southern California retail center has total annual CAM costs of $60,000.

• Your leased space is 2,000 sq ft in a property with 20,000 sq ft of total rentable space.

• Your share is 10%, meaning you owe $6,000 annually (or $500 per month) for CAM fees.

However, landlords often estimate CAM fees for the upcoming year and then reconcile them at year-end based on actual expenses. If actual costs exceed the estimate, you may receive a bill for the difference.

3. Real-Life CAM Fee Example

Imagine leasing an office in Irvine, CA. Your landlord provides this CAM invoice breakdown:

Expense Item	Annual Cost	Your Share (10%)	Annual Charge
Landscaping	$15,000	$1,500	$1,500
Parking Lot Maintenance	$8,000	$800	$800
Security Services	$12,000	$1,200	$1,200
Exterior Lighting	$5,000	$500	$500
Janitorial (Common Areas)	$20,000	$2,000	$2,000
Total	$60,000	$6,000	$6,000

This means your monthly CAM fee payment is $500, in addition to your base rent.

4. Why CAM Fees Matter in Southern California

In Southern California, CAM fees can be particularly significant due to higher labor costs, strict building codes, and frequent landscaping needs. For retail spaces in high-traffic areas like Los Angeles, CAM fees can sometimes equal 20–30% of your base rent.

5. How to Protect Yourself

• Request a detailed CAM budget before signing your lease.

• Review past invoices to spot patterns or sudden increases.

• Negotiate caps on annual increases to avoid unexpected spikes.

• Clarify exclusions, ensuring you’re not paying for capital improvements that don’t benefit your space.

Understanding CAM fees is essential for budgeting and negotiating your Southern California commercial lease. These charges aren’t “extra” — they’re part of your real occupancy cost, and ignoring them can lead to unpleasant surprises later.