A lease rate is stated as $1.00/SF. What does this mean?
This is the monthly lease cost per square foot per month. Example: 1000 SF space quoted at $1.00/SF = monthly rental rate of $1,000
What are CAM charges?
This stands for Common Area Maintenance charges and is the cost for items such as grass cutting, parking lot maintenance, common area lighting, snow plowing, etc. These charges are based on actual expenses and are apportioned among the Tenants. CAM charges are quoted as $X.XX/SF and are based on rentable square footage. Typically these charges are paid monthly based on estimated costs for the year. At the end of the year, actual CAM charges are tallied and either a credit or debit is passed on to the Tenants.
What does NNN mean as quoted in a lease rate?
The NNN refers to additional actual expense items that are apportioned among all the Tenants. Typically included in NNN are CAM, building insurance and property taxes. This is referred to in most leases as Additional Rent. A cautionary note: ALWAYS ask what is included in the rental rate quoted and what additional items you are responsible for. NNN is defined differently by different landlords. Typically utility costs are NOT included in NNN expenses and are therefore a separate additional cost to the tenant.
Copyright © 2023 Call Melony - All Rights Reserved.