common area: FAQ: CAM Charges & Common Area Rent
- 10/06/08 03:36 AM
Question: The Lessee (Tenant) asked why do I also pay rent for the common area instead of just CAM charges? Answer: The base rent charged for the office suites in the building are a reflection of the Lessors (Landlord)desired return on and of his investment in the building. In many cases the Lessor's investment in the common areas is greater than in the leased office suites. Common areas typically include fully handicapped bathrooms, elevators, fire/life safety elements and many times above standard finishes. All of this adds to the overall cost of the building and must be included when calculating his … (3 comments)
Question: The Lessee (Tenant) asked why do I also pay rent for the common area instead of just CAM charges? Answer: The base rent charged for the office suites in the building are a reflection of the Lessors (Landlord)desired return on and of his investment in the building. In many cases the Lessor's investment in the common areas is greater than in the leased office suites. Common areas typically include fully handicapped bathrooms, elevators, fire/life safety elements and many times above standard finishes. All of this adds to the overall cost of the building and must be included when calculating his … (3 comments)
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