Security Services in CAM Reconciliation
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.
Benchmarks per SF
Source: BOMA EER / IREM 2024
Typical GL Codes
Recoverable Components
- Lobby security officers
- Patrol services (interior and exterior)
- CCTV system monitoring and maintenance
- Access control system maintenance
- Visitor management system costs
Non-Recoverable Components
- Capital security system installation
- Security for construction projects
- Tenant-specific security (executive protection)
- Security system upgrades (capital vs. maintenance distinction)
Allocation Method
Pro-rata by rentable square footage. Security is generally a fixed cost (the guard is posted regardless of occupancy), so gross-up is typically not appropriate. However, in buildings where security staffing scales with occupancy (adding guards as floors are occupied), it may have a variable component.
Common Lease Language
“Operating Expenses shall include all costs of providing security services for the Building and Common Areas, including security personnel, monitoring systems, access control, and related equipment maintenance.”
Common Billing Errors
- Grossing up security costs when they are fixed regardless of occupancy
- Including capital security upgrades (new camera system) as operating expenses
- Charging tenants for security services in areas they cannot access
- Failing to separate after-hours security charges from base building security
Year-over-Year Trends
Security costs have increased 8-12% annually, driven by wage increases for security personnel and rising technology costs. AI-powered surveillance and automated access control are beginning to reduce headcount in some buildings, but implementation costs are typically capital, not operating expenses.
Additional Context
Security is a nuanced CAM category because it straddles the line between fixed and variable costs. A building with 24/7 lobby security incurs the same cost at 60% occupancy as at 95% occupancy. However, buildings in high-crime areas or with retail components may scale security with occupancy or seasonal traffic.
Related Resources
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