December 5, 2023
If you’re familiar with the term CAM audit then clearly you are a commercial real estate professional and these posts are for you. For those not in the know, a commercial real estate CAM audit is a common area maintenance audit.
Common area maintenance is a term that covers costs that are associated with maintaining the common or public areas of a commercial property such as a shopping mall or commercial office complex. These associated expenses and costs cover matters of exterior and sometimes interior landscaping as well as security, cleaning and the maintenance of other spaces that are commonly shared or available to both tenants and the public.
So, where does the audit part of this term come into play and what are we looking to cover under the umbrella of “CAM audit” in these posts? An audit is a review or examination of the expenses that are involved in the maintenance of these specific areas. Why is there a need for a CAM audit? This is done to make sure that the costs and charges for the maintenance of these areas are accurate and in line with lease agreements and budget expectations.
This is an important process because it helps to identify any budget concerns, discrepancies or overcharges. When properly scrutinized, a CAM audit can help to ensure that these common areas are properly maintained and that tenants are not paying above and beyond their share of the maintenance of these locations.