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Common Area Maintenance, Insurance, and and Taxes Provisions in Commercial Leases (Live Replay from November 10, 2022)

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Description

Common area expenses (CAM) are part of virtually every office and retail lease. These expenses cover everything from parking lots and reception areas to common meeting spaces and restrooms.

In triple net leases, landlords seek to recover these expenses from tenants. This can be a significant component of a tenant's lease expense.

The scope of CAM, caps or other limitations, and audit rights are highly negotiated. Landlords and lenders are often reluctant to give any concessions.

This program provides a practical guide to negotiating and drafting CAM provisions in commercial leases.

  • Scope of common area maintenance (CAM) expenses
  • Relationship to minimum maintenance standards
  • Treatment of taxes and insurance
  • Differentiating operating v. capital expenses in CAM recovery
  • Caps on CAM, fixed CAM, gross-up considerations
  • Audit and information rights for CAM
  • Understanding landlord, lender, and tenant motivations and concerns

Contributors

  • Anthony Licata

    Anthony Licata is a partner in the Chicago office of Taft Stettinius & Hollister LLP, where he formerly chaired the firm's real estate practice. He has an extensive practice focusing on major commercial real estate transactions, including finance, development, leasing, and land use. He formerly served as an adjunct professor at the Kellogg Graduate School of Management at Northwestern University and at the Illinois Institute of Technology. Mr. Licata received his B.S., summa cum laude, from MacMurray College and his J.D., cum laude, from Harvard Law School.

    Click here for more information about Anthony.

May 17, 2023
Wed 1:00 PM EDT

Duration 1H 0M

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