Disputing Common Area Maintenance (CAM) Charges for a Commercial Lease

Under a triple net lease, tenants are generally required to pay all repair and maintenance costs relating to the common areas of the property it is leasing. In other words, the commercial lease terms will generally provide that the tenant pay the percentage of total common area maintenance (CAM) expenses that its leased square footage bears to the total leasable square footage on the entire commercial property. The total monthly CAM expenses are multiplied by a tenant’s percentage of total leasable square footage to establish the appropriate CAM charge for that tenant.

Disputes between a commercial landlord and a commercial tenant can arise concerning the validity of the CAM charges being passed through to the tenant. A good example, is the case of Pate v. Channel Lumber Co (1997) 51 Cal App 4th 1447. This case relates to one of my favorite vacation spots – Lake Tahoe, California. Here, the commercial tenant who was leasing retail space at the Boatworks Mall in Tahoe City, California sued the owner/landlord of the Boatworks Mall, Channel Lumber Company for breach of contract and misrepresentation. Pate prevailed in the matter and was ultimately awarded damages for improper CAM expenses.

This entry was posted in Commercial Leasing, commercial real estate., Commercial Real Property, Real Estate Litigation, Uncategorized and tagged , , . Bookmark the permalink.

2 Responses to Disputing Common Area Maintenance (CAM) Charges for a Commercial Lease

  1. Samuel Kang says:

    I have the thing issue right now with a bunch of armenian kids as my landlords. Ever since the builder sold the plaza to these idoits, i have been having problems such as, common parking and signage lights were not turned on, fire monitoring service was turned off, threads of shutting down water, over charging on property tax and CAM, wanting to physically fight me during my business hours and making threads to me and death threads to my buyer. I need help to get out of this lease.

  2. Wow, awesome weblog structure! How long have you ever been blogging for? you made blogging look easy. The entire glance of your website is fantastic, let alone the content material!

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