CAMs and what is included

[Jonathan Orr]

Hi BP

I wanted to get your opinion on what is included in Common Area Maintenance fees (CAMs). I know that most if not all fees for the maintenance and care of the property are included. However one thing I am wondering is if you have a tenant (I am speaking from the commercial side of real estate) and have a NNN lease. In your CAMs charges, do you include the fee for a management company or manager?

I am looking at developing a few industrial properties and want to be able to base my underwriting correctly if I should include the management fee in the CAMs once the property is up an running.  

Thank you!