Snow & Ice Removal in CAM Reconciliation
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.
Benchmarks per SF
Source: BOMA EER / IREM 2024 (northern markets)
Typical GL Codes
Recoverable Components
- Plowing and snow removal from common areas
- Salting and de-icing sidewalks and entries
- Snow hauling (when accumulation exceeds storage capacity)
- Ice management supplies
Non-Recoverable Components
- Snow removal from tenant-exclusive areas (unless lease specifies)
- Damage repair from snow removal equipment (capital)
- New snow removal equipment purchases (capital)
Allocation Method
Pro-rata by rentable square footage. Snow removal is a variable cost driven by weather, not occupancy, so gross-up is not appropriate. Some leases cap snow removal at a per-SF amount with excess borne by the landlord. In multi-building campuses, costs may be allocated by building based on parking lot and sidewalk area.
Common Lease Language
“Operating Expenses shall include all costs of snow and ice removal from the Common Areas, parking lots, sidewalks, and building entries, including plowing, salting, sanding, and related services.”
Common Billing Errors
- Grossing up snow removal costs (they are weather-variable, not occupancy-variable)
- Including snow removal equipment purchases as operating expenses
- Failing to credit tenants when mild winters produce below-budget costs (if budget-based billing is used)
- Charging tenants in a multi-building campus for plowing of unoccupied building parking lots
Year-over-Year Trends
Snow removal costs are inherently volatile, varying 50-100% year to year based on snowfall. The 2023-2024 winter produced below-average costs in the Midwest but above-average in the Northeast. Labor shortages for plow operators have increased per-event costs by 10-15%. Some landlords are switching to fixed-fee seasonal contracts to reduce volatility.
Additional Context
Snow and ice removal is the most volatile CAM line item in northern markets. Tenants should understand whether their lease uses actual costs or budget-based billing. Budget-based billing smooths costs but requires year-end reconciliation. Fixed-fee seasonal contracts eliminate volatility but may be above the multi-year average cost.
Related Resources
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