How can you negotiate common area maintenance fees during lease negotiations?

2 Review the lease terms

Another key step is to review the lease terms carefully and look for any clauses that relate to CAM fees. You should pay attention to how the CAM fees are defined, calculated, allocated, and billed. For example, some leases may use a fixed or capped CAM fee, which means you pay a set amount or a maximum limit regardless of the actual expenses. Other leases may use a variable or pro-rata CAM fee, which means you pay a percentage of the total expenses based on your share of the leased space. You should also look for any exclusions, exceptions, or adjustments that may affect your CAM fees, such as capital improvements, management fees, or tenant improvements.

3 Negotiate the best deal

Once you have a good understanding of the market and the lease terms, you can start negotiating CAM fees with the landlord. Your goal should be to lower your CAM fees by requesting concessions or incentives such as a lower base rent or a cap on annual increases. You should also aim to have a more favorable allocation or billing method for CAM fees, as well as a more detailed and transparent breakdown of CAM expenses. Additionally, you should consider asking for a right to audit or dispute CAM expenses, or even limit certain CAM expenses such as capital improvements, management fees, or tenant improvements. However, it is important to be prepared to compromise and offer something in return, like a longer lease term, a higher security deposit, or a lower tenant improvement allowance. The key is to find the right balance between your needs and the landlord's expectations, so that you can create a mutually beneficial situation for both parties.