That monthly CAM charge can sometimes feel like a black hole – a necessary evil we pay without always digging into the details. But with retail theft on the rise and landlords investing more in security, it’s worth taking a closer look at what we're actually paying for. Especially if you’re staring down a lease renewal or trying to make sense of a recent CAM reconciliation statement, understanding where security costs fit in is crucial.

Security and Your CAM Bill

We recently came across a piece from Security Protective Services that highlights something many of us might not fully realize: for most of us in triple net (NNN) leases, we’re likely sharing the cost of security measures. The article specifically notes that common area maintenance (CAM) charges in shopping centers frequently include expenses related to security. This isn't just about a guard standing at the main entrance; it can cover everything from security patrols, CCTV systems, alarm monitoring, and even certain insurance premiums related to theft prevention. The mechanism is straightforward: the landlord incurs these costs to maintain the common areas and keep the property secure, and then passes a pro-rata share of these expenses directly to us, the tenants, through our CAM fees.

What This Means for Your Lease

This reality has significant implications for our bottom line. When we sign an NNN lease, we're agreeing to pay our share of the property taxes, insurance, and CAM. The "CAM" bucket is often the most opaque, and it's where landlords have the most flexibility to pass on costs. Security, while beneficial, can be a substantial expense. This means that if your landlord decides to increase security measures – perhaps adding more patrols, upgrading surveillance, or hiring additional personnel in response to rising theft rates – those increased costs will likely show up directly in your CAM charges. We've seen this play out where a landlord might implement a new security initiative mid-lease, and while we appreciate the added protection, the unexpected jump in CAM can hit hard. It’s not uncommon for landlords to lump security costs into a broad "common area expenses" category, making it difficult to discern the specific line items without a detailed breakdown. When negotiating a new lease or renewal, it’s vital to ask for clarity on what specific security measures are included in CAM and whether there are caps on how much these costs can increase annually. Without a cap, your exposure to potentially escalating security expenses is unlimited.

What to Check This Week

So, what can we do? First, pull out your current lease agreement and go straight to the CAM clause. Look for specific language about what’s included in common area maintenance and if security is explicitly mentioned. If it’s vague, make a note to ask for a detailed breakdown of CAM expenses from your landlord – you have a right to see how your money is being spent. For those approaching a renewal, this is your prime opportunity to negotiate. Consider proposing a cap on annual CAM increases, specifically addressing security costs if they seem particularly high, or asking for a clear definition of what constitutes a "security expense" that can be passed through. Understanding these details now can prevent unpleasant surprises down the road. Share your experiences in the forum – have you successfully negotiated security costs in your CAM, or been hit with an unexpected increase?