Common Area Maintenance

Learn about common area maintenance (CAM) in Canadian commercial real estate — what it covers, how it’s billed, and why it matters.

Common Area Maintenance

August 07, 2025


What is Common Area Maintenance?

Common area maintenance (CAM) refers to the costs associated with maintaining and operating shared spaces in multi-tenant properties.

Why Common Area Maintenance Matters in Real Estate

In Canadian commercial real estate, CAM charges are billed to tenants in proportion to their leased space to cover upkeep and management of common areas.



Examples:
  • Landscaping and snow removal
  • Security, lighting, and janitorial services
  • Repairs and maintenance for shared facilities



Understanding CAM charges helps tenants and landlords budget and negotiate lease terms effectively.

Example of Common Area Maintenance in Action

The retail tenant reviewed the lease’s CAM clause to understand how shared maintenance costs would be calculated and billed.

Key Takeaways

  • Covers maintenance costs of shared areas
  • Billed to tenants based on leased space proportion
  • Common in commercial leases
  • Includes security, cleaning, and repairs
  • Important for lease negotiations and budgeting

Related Terms

Additional Terms

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