by Jeffrey D. » Sat Dec 01, 2012 8:20 pm
I have represented a number of tenant clients in commercial lease negotiations or lease-related litigation. CAM abuse is rampant and widespread. It's not unheard of to find leases where the CAM can exceed the rent, especially when the landlord or its agent get paid management services, overhead, have captive (or cozy) service companies and so forth (why put work out for bids or care what it costs when the tenants are paying it all, plus the landlord gets an overide percentage for "management")?
I advise all my clients to negotiate a cap on the CAM as part of the lease. Landlords almost always agree (sometimes with % escalators over the years) and the cap usually comes into play sooner rather than later.
My memory's not as sharp as it used to be.
Also, my memory's not as sharp as it used to be.