Demystifying Operating Expenses and Common Area Maintenance Fees in Commercial Leases
Sheryl Mazirow, CCIM ? Commercial Real Estate Broker - Tenant Only
President, CCIM @ Mazirow Commercial, Inc. | Tenant Representation Expert
Understanding your commercial lease goes beyond just rent. Two key terms that significantly impact your monthly costs are Operating Expenses (OPEX) and Common Area Maintenance (CAM).
What's the Difference?
While often used interchangeably, there's a subtle distinction:
Operating Expenses (OPEX): The overall costs associated with running and maintaining the property. These are ultimately passed on to tenants, typically based on their square footage usage in multi-tenant buildings.
Common Area Maintenance (CAM): A subset of OPEX specifically related to maintaining common areas like hallways, elevators, and restrooms. It also includes janitorial services, security, and parking lot upkeep.
Learn whether these are typically included in your rent, and how the differences between a gross or net lease can affect OPEX and CAM.
Determining the best course of action for your lease requires scrutiny of the details of CAM and OPEX, forecasting and analysis of future costs, and negotiation skills to get a deal that will work for your business.
Mazirow Commercial's expertise saves you time, money, and ensures a lease that aligns with your business goals. Don’t go it alone – secure your competitive advantage with Mazirow Commercial on your side.
Call us at (805) 449-1945 for a free consultation!
Sheryl L. Mazirow, CCIM
President
Tenant Representation