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Ever since the first lease was signed for a space in a self-contained
landlords and tenants have been at war over who should pay
for the costs of maintaining
common areas and operating and managing the
In a typical shopping center, the landlord owns most if not all of the
land; builds buildings to house tenants
and provides parking,
sidewalks, lighting and, in enclosed malls, interior walkways and climate
control.Tenants expect to pay rent for use of the building space and will agree to
maintain and repair it while
they use it. But who should pay for the upkeep
of other areas, those owned by the landlord
but used jointly by tenants and
Fair costs for tenants
Tenants will generally agree to share the cost of maintenance and repair
the parking lot (including lighting and landscaping), the sidewalks, the
enclosed malls, and public
amenities like restrooms. These areas are
clearly used by the tenants' customers.
The condition of these areas has a
direct impact on the likelihood that customers will frequent the center.
CAM charges will be whatever you and your landlord negotiate them to be. There are no hard and fast rules for $ or % because every location is different. The age/appearance as well as location of the center are only some of the factors to be considered.
You should try checking with other centers in your area to see what they are charging so you have additional knowledge when negotiate the terms of your lease.
Naturally, the landlord will try to milk you for all he can.