Work out common area maintenance instantly with clear inputs, formula shown and shareable results.
Common area maintenance is recovered pro rata: total CAM cost divided by gross leasable area gives a rate per square foot, and each tenant pays that rate on its leased area. Landlords typically add an administration fee of five to fifteen percent to cover management of the CAM budget itself.
Pro rata share
Rate = total CAM / gross leasable area; tenant share = rate x tenant area
With admin
Total = tenant share x (1 + administration fee)
Rate = total CAM / gross leasable area; tenant share = rate x tenant area. Common area maintenance is recovered pro rata: total CAM cost divided by gross leasable area gives a rate per square foot, and each tenant pays that rate on its leased area.
That is the vacancy risk question. A gross-up clause lets the landlord charge as if the centre were 90-95 percent occupied, otherwise sitting tenants absorb the vacant units' share.
This calculator takes 4 inputs: Total annual CAM cost, Total leasable area, Tenant leased area, Administration fee. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.