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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
CAM is not a usage charge — tenants pay for their proportional share of shared operational expenses, not their individual consumption.

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How It Works in Billspree

CAM maps onto Billspree’s composition model with one added complexity: the estimate + reconciliation cycle.

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The Allocation Formula

For example, a tenant leasing 2,000 sq ft in a 20,000 sq ft building with $60,000 annual CAM costs:

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Estimate and Reconciliation

CAM charges typically follow a two-step annual cycle:
  1. Monthly Estimates — tenants pay a fixed monthly CAM estimate based on the projected annual budget
  2. 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)

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Key Differences from RUBS

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Key Characteristics