CLEAN Operating Costs and other Additional Rents in a ...

1 Operating Costs and other Additional Rents in a Commercial Lease from a Tenant s Tenants usually understand the terms minimum rent and percentage rent . They also understand that in a typical commercial lease there is an obligation to pay an assortment of Additional Costs (usually termed Additional rent ), including: the utilities consumed in their premises; the realty taxes applicable to their premises and the development; business taxes if levied on the business being conducted from their premises; promotion and advertising charges; heating, ventilating and air conditioning ( HVAC ) charges; and a contribution to common area Costs ( CAM Costs ). It is, however, the extent of charges within Additional rent, primarily CAM Costs , which can catch the unwary tenant and cause a significant increase in the tenant s Additional rent. Landlords use broad, generic language in their offers to lease to describe CAM Costs , with the devil being found in the detail of the lease.

1 Operating Costs and other Additional Rents in a Commercial Lease from a Tenant’s Perspective.1 Tenants usually understand the terms “minimum rent” and “percentage rent”.

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