CAM, TMI & WTF? Let’s Break Down What You’re Actually Paying For in That Lease
When you're leasing commercial space, there’s more to the deal than just base rent. Enter CAM (Common Area Maintenance) or TMI (Taxes, Maintenance, Insurance) the extra line items that cover the cost of keeping the place functional, safe, and not looking like a disaster zone.
These shared expenses are built into most commercial leases, but let’s be honest: most tenants aren’t totally sure what they’re actually paying for. And that’s where the surprises (read: extra costs) start showing up.
Let’s break it down:
✅ What’s Usually Included in CAM/TMI:
Maintenance & Repairs (Shared Areas Only):
Landscaping, snow removal, and salting
Parking lot maintenance and repairs
Elevator and HVAC servicing (for shared systems)
Utilities for Common Areas:
Lighting, heating, water for lobbies, hallways, and exteriors
Security & Safety:
Security guards, alarm systems, fire protection
Property Management Fees:
Admin and management services for day-to-day building ops
Building Insurance:
Covers the structure -not your unit, not your stuff
❌ What’s Not Included (and Shouldn’t Be):
Tenant-Specific Costs:
Your own hydro, HVAC, cleaning, repairs - those are on you - the exception being office space where these can be included
Capital Improvements:
Major renovations or upgrades that increase the property's long-term value (like a brand-new roof or a fancy lobby facelift)
Legal & Admin Costs (Specific to Other Tenants):
Landlord's legal fees for lease disputes or negotiating deals with other tenants? Not your tab.
Marketing Costs:
Advertising for vacant space in the building? Shouldn’t show up on your CAM statement.
🧠 Why This Matters:
If you don’t know what’s in your CAM or TMI charges, you could end up paying for things that don’t benefit you, or shouldn’t be your responsibility at all.
📌 Pro Tip:
Ask for a breakdown of CAM/TMI charges - in writing
Push back on anything vague, excessive, or just plain sketchy
Negotiate audit rights into your lease so you can verify what you’re being billed for
Got CAM questions?
Let’s cut through the legalese and get to the numbers.
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