Which term best describes expenses for shared spaces in a commercial property?

The term that best describes expenses for shared spaces in a commercial property is referred to as common area maintenance (CAMs). CAMs encompass the costs associated with maintaining and managing common areas within a commercial property, such as lobbies, hallways, restrooms, parking lots, and landscaping. These expenses are typically allocated among all tenants occupying the property based on the proportion of space they lease.

Understanding CAMs is crucial in commercial real estate, as they can significantly impact the total operating costs that a tenant must consider when leasing space. These costs ensure that shared facilities are functioning correctly and remain appealing for both tenants and their clients, ultimately fostering a positive environment and enhancing property value.

While operating costs cover a broader range of expenses related to the day-to-day functioning of the property, and tenant contributions refer to amounts paid by tenants toward specific services or improvements, CAMs specifically highlight the costs tied exclusively to the maintenance of common areas. Administrative expenses typically involve costs related to property management and administration, rather than maintenance of shared areas.