Don't Agree to Keep CAM/Operating Expense Costs “Competitively” Priced

Tenants that must pay common area maintenance (CAM) or operating costs typically want assurances that landlords will keep those expenses reasonable and in line with the average costs that owners of other shopping centers or office buildings in the area pay. And if the tenant has bargaining clout, you’ll have to give in to their demands. The typical result is a commitment by the landlord to hire contractors and service vendors that are “competitively” priced.