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

Additional Terms

Contingent Liability

A contingent liability is a potential financial obligation that may occur depending on the outcome of a future event.. more

Clawback Provision

A clawback provision is a contractual clause that allows a party to recover previously granted money, benefits, or rights under certain conditions.. more

Change of Use Permit

A change of use permit is official authorization from a municipality allowing a property owner to change the property's intended or legal use.. more

Certificate of Compliance

A certificate of compliance is an official document issued by a municipality confirming that a property complies with applicable zoning bylaws and. more

Carrying Costs

Carrying costs, also known as holding costs, are the ongoing expenses incurred by property owners while holding real estate before it is sold,. more

Capitalization Rate

The capitalization rate, or cap rate, is a measure used to estimate the return on investment for an income-producing property, calculated as Net. more

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