Common Area Maintenance (CAM) charges are fees paid by tenants to landlords for the upkeep of shared spaces such as hallways, restrooms, and parking lots. These charges are typically calculated on a pro-rata basis and are essential for the maintenance and functionality of commercial properties.
A Net Lease is a type of lease agreement where the tenant agrees to pay not only the base rent but also additional costs associated with the property, such as taxes, insurance, and maintenance. This arrangement ensures that the landlord's rent receipt is 'net' of these expenses.
Overage in leases for retail stores is the additional amount to be paid based on gross sales that exceed a predetermined threshold in addition to the base rent, often seen in percentage leases.
