What is CAM?
CAM (Common Area Maintenance) is an allocation method used in commercial real estate — retail malls, office buildings, mixed-use developments. The landlord incurs ongoing costs to operate and maintain shared spaces (lobbies, parking lots, landscaping, security, cleaning). These costs are recovered from tenants based on each tenant’s pro-rata share of the total leasable area. Common CAM cost categories include:- Building maintenance and repairs
- Cleaning and janitorial services
- Security and access control
- Landscaping and exterior upkeep
- Common area utilities (lighting, HVAC)
- Property management fees
How It Works in Billspree
CAM maps onto Billspree’s composition model with one added complexity: the estimate + reconciliation cycle.| Billspree Concept | CAM Role |
|---|---|
| Pricing Template | Defines rate components (CAM cost pool) and charge components (per-tenant allocation, reconciliation adjustment) |
| Rate Card | Holds the estimated annual CAM budget, broken into monthly amounts |
| Charges Set | Contains the allocation formula: (Tenant SF ÷ Total Leasable SF) × Total CAM Cost |
| Composite Plan | Combines Rate Card and Charges Set into a subscribable tenant lease plan |
| Subscription | Captures tenant-specific inputs (leased square footage) used in the formula |
The Allocation Formula
Estimate and Reconciliation
CAM charges typically follow a two-step annual cycle:- Monthly Estimates — tenants pay a fixed monthly CAM estimate based on the projected annual budget
- Year-End Reconciliation — actual costs are tallied and compared to estimates. Tenants receive either a true-up invoice (if actuals exceeded estimates) or a credit (if actuals came in under)
Key Differences from RUBS
| RUBS | CAM | |
|---|---|---|
| What’s allocated | Utility consumption costs | Operational/maintenance expenses |
| Context | Multifamily residential | Commercial real estate |
| Allocation key | Occupancy, bedrooms, sq ft | Pro-rata square footage |
| Billing cycle | Monthly (tied to utility bill) | Monthly estimates + annual true-up |
| Reconciliation | None | Year-end true-up standard |
Key Characteristics
| Meter required? | No — cost recovery, not consumption billing |
| Cost source | Landlord operational expenditure |
| Allocation basis | Pro-rata share of total leasable area |
| Billing cycle | Monthly estimates, annual reconciliation |
| Common in | Retail malls, office buildings, mixed-use commercial |