Fire & Life Safety Systems in CAM Reconciliation
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.
Benchmarks per SF
Source: BOMA EER / IREM 2024
Typical GL Codes
Recoverable Components
- Annual fire alarm inspection and testing
- Sprinkler system inspection and maintenance
- Fire extinguisher inspection and replacement
- Emergency lighting testing and battery replacement
- Fire pump maintenance and testing
- Smoke control system maintenance
Non-Recoverable Components
- Fire alarm system replacement (capital)
- Sprinkler system upgrade or expansion (capital)
- Fire code compliance upgrades (capital)
- Fire department connection modifications (capital)
Allocation Method
Pro-rata by rentable square footage. Fire and life safety maintenance is a fixed cost (inspections occur regardless of occupancy), so gross-up is not appropriate. Costs are consistent year to year unless code changes require additional testing or system modifications.
Common Lease Language
“Operating Expenses shall include all costs of maintaining, testing, inspecting, and monitoring the Building's fire protection and life safety systems as required by applicable codes, insurance carriers, and governmental authorities.”
Common Billing Errors
- Including fire system upgrades required by code changes as operating expenses instead of capital
- Charging tenants for fire alarm panel replacement (capital) as maintenance
- Failing to distinguish between base building fire systems (CAM) and tenant-specific fire suppression (tenant cost)
- Including fire department fines in CAM charges
Year-over-Year Trends
Fire and life safety costs have increased 4-6% annually due to more stringent inspection requirements, labor cost increases for certified technicians, and evolving code requirements. Many jurisdictions now require annual flow testing of fire pumps and five-year internal sprinkler pipe inspections, adding to recurring costs.
Additional Context
Fire and life safety is a regulatory-driven expense that provides limited negotiating flexibility. Landlords must comply with local fire codes and insurance carrier requirements regardless of cost. Tenants should verify that charges are for maintenance and inspection only, not for capital system upgrades that should be amortized.
Related Resources
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