CAM Expense Category Deep Dives

Ad valorem taxes levied by local jurisdictions based on the assessed value of real property. Property taxes fund local government services including schools, fire departments, police, and infrastructure. They are assessed annually and typically paid in installments.

Property and liability insurance coverage maintained by the landlord to protect the building, common areas, and the landlord's interest. Includes property (fire, wind, flood), general liability, umbrella/excess liability, and may include terrorism, earthquake, and environmental coverage.

Regular cleaning and maintenance of common areas and (in full-service leases) tenant suites. Includes nightly cleaning, restroom maintenance, floor care, window washing, and day porter services for lobbies and common areas.

Maintenance of exterior grounds including lawn care, plant maintenance, irrigation, tree trimming, seasonal planting, and hardscape maintenance. Applies to office parks, retail centers, and any property with landscaped common areas.

Physical security and access control for the building and common areas. Includes lobby security officers, patrol services, CCTV monitoring, access control systems, and visitor management. May include off-duty police for retail properties.

Electricity, gas, water, and sewer charges for building common areas including lobbies, corridors, restrooms, parking structures, exterior lighting, and shared mechanical systems. Does not include individually metered tenant utilities.

Maintenance, repair, and operation of heating, ventilation, and air conditioning systems serving the building's common areas and base building infrastructure. Includes preventive maintenance contracts, filter replacement, coil cleaning, controls calibration, and non-capital repairs.

Maintenance, repair, and inspection of vertical transportation systems including passenger elevators, freight elevators, escalators, and moving walkways. Includes service contracts, annual inspections, code compliance, and non-capital repairs.

Maintenance and operation of parking facilities including surface lots, parking structures, and underground garages. Covers sweeping, striping, lighting, repairs, revenue control equipment, and structural maintenance for garages.

Removal of snow and ice from parking lots, sidewalks, building entries, and loading areas. Includes plowing, salting/sanding, de-icing, and related services. A significant expense in northern climates that varies dramatically by winter severity.

Regular pest management services for the building and common areas, including preventive treatments, monitoring, and response to infestations. Covers insects, rodents, birds, and wildlife management in and around the building.

Maintenance, inspection, and testing of fire protection and life safety systems including fire alarm, sprinkler systems, fire extinguishers, emergency lighting, stairwell pressurization, and smoke control systems. Required by local fire codes and insurance carriers.

Inspection, maintenance, and repair of the building's roof system, including membrane, flashing, drainage, skylights, and associated components. Excludes full roof replacement, which is a capital expenditure.

Fees paid to the property management company (or charged internally by the landlord's management division) for day-to-day building operations, tenant relations, vendor oversight, budgeting, CAM reconciliation, and financial reporting.

General administrative costs associated with building operations, including accounting, legal, audit, office supplies, telecommunications, and other overhead expenses that support the property management function but are not directly attributable to a specific service category.