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Topic: CAM Costs

Pass Disaster Costs Through to Tenants

March 21, 2011
Disasters have always affected commercial owners who must deal with property damage caused by snowstorms, hurricanes, fires, and floods. Passing disaster-related expenses through to tenants in common area maintenance (CAM) charges can lower your repair bills and boost your bottom line after your shopping center or office building has been damaged. Negotiate with your tenant to obligate it to pay for at least some of the cost of rehabilitating your property.
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Pass Through Off-Site Traffic Improvement Costs to Tenants

July 26, 2010
Most shopping center owners provide off-site traffic improvements—such as special signage and lighting in areas leading to the center—to their tenants. These improvements benefit both owners and tenants because they help increase customer traffic, which means more sales at the center. And these improvements may also help control the flow of vehicles into and out of the center, reducing the risk of accidents.
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Limit Tenant’s Right to Lease Audit

November 23, 2009
Download: clli-april-2012-iss.pdf, CLLI_December2009_Model Lease Clause_Negotiate Owner-Favorable Lease Audit Provisions.pdf
When looking to cut costs, one of the first things that tenants try to trim are their operating costs. If a tenant believes that it has overpaid for its share of the building's operating expenses, a lease audit is inevitable for you. Your first step in preparing for audits should be at the lease negotiations stage. Insist on lease provisions that limit your tenant's right to inspect your books and records so that the tenant doesn't have free reign over the process.
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Collect CAM/Operating Cost Increases During Year

September 26, 2008
Hurricane Ike's push into Texas, home of nearly one quarter of the nation's refining capacity, had a significant impact on gas prices across the nation. Several states, many of which were not in the tropical storm's path, saw gas prices that surpassed the $4 a gallon mark, with some consumers paying as much as $5.09 per gallon.
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