A couple of questions people ask a lot. Let us know if you have any others.

Q: What is Tax & CAM?
A: Tax refers to property taxes. Additional rent is charged to tenants in the form of a Tax fee to cover the property taxes due for the property. CAM is an acronym for Common Area Maintenance. Additional rent is charged to tenants in the form of a CAM fee to cover the costs to maintain the common areas of a property. Most times this includes property insurance, snow removal, landscaping, lawn care, parking lot maintenance, water and sewer, roof repairs, and miscellaneous building maintenance. Tax & CAM is divided among the tenants of the building, generally based upon the tenant’s square footage percentage of the overall complex.

Q: What does $5.00 per s.f. mean?
A: If you’re looking at a property that is 2,000 s.f. and are told that the lease rate is $5.00 per s.f. that means you calculate the square footage, in this case 2,000, and multiply it by the $5.00 lease rate to get the yearly rent cost. Divide the yearly cost by 12 to determine your monthly rent amount.

Example:
2,000 s.f. x $5.00 = $10,000 annual rent
$10,000/12 months = $833.33 per month rent

Q: What’s a triple net lease?
A: There are numerous forms of net leases, the most common of these being the Triple Net lease. In a Triple Net lease, the tenant is responsible for their proportionate share of property taxes, property insurance, common operating expenses and common area utilities. Tenants are further responsible for all costs associated with their own occupancy including personal property taxes, janitorial services and all utility costs.

Q: What is pro rata share?
A: The Tenant’s proportionate share of operating expenses is calculated on a square footage basis. Tenant’s Sq. Ft. divided by Total Building Sq. Ft. = Tenant’s pro rata (or proportionate) share

Q: What is flex space?
A: A building that provides a configuration allowing occupants a flexible amount of office or showroom space in combination with manufacturing, laboratory, warehouse, distribution, etc.

Q: What is a Tenant Improvement Allowance?
A: The fixed amount of money contributed by the landlord toward tenant improvements. The tenant pays any of the costs that exceed this amount. Also known as a TI allowance.