Clause LibraryCAM / Operating Expenses (NNN)
CAM / Operating Expenses (NNN) Clause
Maintenance
critical risk
commercial lease
Common Area Maintenance and operating cost pass-throughs in commercial leases.
Tenant-friendly language
“CAM increases capped at 3%/year on controllable expenses; tenant may audit landlord's books.”
Landlord-friendly language
“Tenant pays its pro-rata share of all operating expenses without cap.”
What to watch out for
No cap on increases, inclusion of capital expenditures, admin fees stacked on CAM, no audit right.
How to negotiate
Cap controllable CAM, exclude capital items, add an audit right and a base-year gross-up cap.
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