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

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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