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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Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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