Common Area Maintenance (CAM) provisions in retail leases enable landlords to
maintain the common areas of a shopping center on behalf of the tenants and then
divide and allocate the costs of such maintenance among the tenants and
occupants of the shopping center. A well-drafted CAM provision will clarify the
responsibilities of both the landlord and the tenant and eliminate unnecessary
confusion during the term of the lease. A standard CAM provision may include the
following language:
"…Tenant shall pay to Landlord, … on the first day of each calendar
month … for each Calendar Year during the Term, …Tenant's Proportionate
Share of Basic Costs …[which shall be defined as follows:] … before the
beginning of each Calendar Year thereafter during the Term, Landlord shall
furnish Tenant with Landlord's estimate of the Basic Costs for the applicable
Calendar Year…. [Within 90 days after the end of each Calendar Year, the
Landlord must furnish the Tenant with a statement of the
