Understanding CAM Charges in Commercial Space Rentals: A Guide for Office Tenants in Bangalore

Kritika Bhola
Dec 23, 2025
6 min read

CAM fees are charges that pertain to common areas outside the rental unit itself, extending to maintenance of such spaces within the leasehold property which would usually include shared areas of the office building. Understanding CAM is a valuable input for office tenants for budgeting purposes and negotiations in the highly competitive environment of Bangalore. This Login Realty guide breaks down everything that is included in CAM, the methods of calculation, and important clarifications before signing-on to help businesses avoid any surprises later.

What Are CAM Charges?

CAM charges assist the management of common spaces in multi-tenant commercial properties, such as those seen in office complexes. Without these, lobbies, elevators, parking, and corridors would become unattractive and dysfunctional, affecting all tenants alike. CAM in Bangalore is usually Rs. 10 to Rs. 25 per square foot per month in Grade A office locations like Whitefield and Koramangala, depending on the specifics of each property qualified.

The tenant shall pay for CAMs over and above the base rent, generally as a pro-rata share depending on the area leased. Fairness is ensured as larger space tenants contribute more. Properties with higher-level amenities, such as 24-hour security services or environmentally enhanced landscaping, tend to have higher CAMs because the operational costs are proportionately higher.

Components Included in CAM

"Common Area Maintenance" covers all expenses associated with common areas, but does not relate to any tenant-specific spaces. The traditional inclusions would be utility bills for the electricity in lobbies and elevators, cleaning in public hallways, and restrooms. Security personnel, CCTV maintenance, and fire safety systems fall under CAM in high-security offices in Bangalore.

Landscaping maintains external greenery, while repairs address weariness on the parking lots and facades. Insurance for common areas, fees for managing property, and integrated waste management add to that pool. In premium Bangalore buildings, CAM might include HVAC servicing for shared ducts, or shuttle services, pushing averages toward Rs. 15-20 per sq ft.

Not all costs qualify; capital improvements such as roof replacements often amortized separately. Exclusions should always be verified, so tenants do not bear inflated billings. Login Realty recommends studying the itemized breakdown during site visits to Bangalore properties.

How CAM Charges Are Calculated

In its essence, CAM calculation consists of the following: Totaling up the annual common area expenses, divide perpetual square footage for dropping a per sq ft background rating. Each tenant would then share this rate multiplied by the area that they occupy: (Total CAM Costs ÷ Total Leasable Area) × Tenant's Area.

Take, for example, a Bangalore office of 100,000 sq ft with annual CAM of Rs 2 crore, resulting in Rs 20 per sq ft per month (Rs 24 lakh monthly total divided by 100,000). On the other hand, a 5,000 sq ft tenant pays Rs 1 lakh monthly. The pro-rata basis ensures that CAM charges are fair, but revenues differ in relation to their variable expenditures, such as utility bills.

By the end of the fiscal year, landlords reconcile the CAM estimates against actual expenses and would refund overcharges while billing for underpayments. In bank-related leases, there is usually a condition that no increase in the rent or CAM would exceed 5-7 annually, inflationary or aligned with the WPI. While fixed CAM brings predictability, variable CAMs keep pace with actual expenditures.

Types of CAM Structures

Commercial leases feature three main CAM types: gross, net, and modified gross. Gross leases bundle CAM into base rent, simplifying payments but potentially inflating totals. Net leases pass full variable CAM to tenants, common in Bangalore's flexible office spaces for cost transparency.
Modified gross splits costs, with tenants covering variables beyond a base. Single-net (N) includes taxes, double-net (NN) adds insurance, triple-net (NNN) encompasses all maintenance—prevalent in standalone Bangalore offices. Login Realty recommends NNN for control over expenses in volatile markets.
Hybrid models blend fixed and variable, capping pass-throughs. Bangalore's RERA regulations mandate clear disclosure, protecting tenants from hidden hikes.

CAM Charges in Bangalore's Office Market

It boom has given CAM a boost in Bangalore, averaging around Rs. 12-18 per sq ft in tech parks in Whitefield. Corridors on the periphery like Electronic City get Rs. 10-15 due to lower amenity levels. Grade-A properties along metro corridors, like ORR, command over Rs. 20 due to immaculate amenities.

Upon lockdowns, solar-powered common areas for sustainable features raise CAM by 10-15%. Moreover, when metro connectivity becomes available, demand increases and indirectly raises charges via occupancies. As per data from Login Realty, expected 2025 averages of Rs. 16 psf reflect an increase owing to attendance of about 8% YoY against inflation.

Market snapshots show Gurgaon exchanges at about Rs. 21 psf, but the water scarcity situation in Bangalore creates plumbing costs. Properties with verified CAM are preferred by tenants for transparency.

Factors Influencing CAM Costs

Old-age buildings which measure up in size indirectly affect CAM; Old buildings in Bangalore attract higher repairs, while newer buildings cost extra on utility requirements. Location matters: Core business areas such as MG Road command 20 percent more than suburbs. Such amenities as gyms or cafeterias ratchet up by Rs 5 psf.
Season presents anomalies in terms of repairs necessitated by the monsoon. Redundant over-cover by management reduces costs, and professional firms cap it at 10 percent overheads. ESG compliance, which is becoming mandatory, adds green certifications to the list.
Tenancy mix accounts for shares; anchor tenants indirectly subsidize the smaller ones. Login Realty tracks these through its.
Differentiate on the basis of age of the property and size. Newer buildings incur higher utility costs; Old buildings have comparatively high repair costs in Bangalore. Location matters - Core business areas like MG Road add 20 percent to the adjacent suburban prices. Such amenities as gyms or cafeterias ramp up by Rs 5 psf.
Seasonal peaks, such as the monsoon repair season, create spikes. Efficiency in management results in a reduction in cost; where it is a professional firm, not more than 10% should be the overhead. ESG compliance, which is now very much becoming a requirement, adds green certifications to the course.
The mix of tenants is the one that determines shares; anchor tenants subsidize small ones indirectly. That is what Login Realty monitors using proprietary tools for client advisory.

What Tenants Should Clarify Before Signing

Highlight CAM position inclusions and exclusions in the lease drafts. Demand past bills of requests for three years to gauge reasonableness. Reconcile timelines—quarterly should be preferred against annual.

Audit rights for an outsider review third parties; negotiation for caps on escalations and exclusions like capital expenditures. Affirm GST applicability-18% on CAM in Bangalore.

Understand pass-throughs: management fees should not exceed 10%. Login Realty pushes for amortization limits on capex at 10 years. Capping scrutiny on CAM should be lower, given that footfall advantages are rendered due to properties adjoining the metro.

Negotiating CAM Effectively

Market comps are the starting point for negotiating Rs. 15 psf benchmark arms in Bangalore. Come up with a fixed CAM for stability or caps at 105% of prior year. Non-operational costs such as marketing to be excluded.

Leverage TIs for concessions, along with a multi-year lease volume discount. Brokers, such as Login Realty, prefer vetted properties where CAM is within acceptable limits.

After the agreement, monitor through portals. They audit annually so that overbilling can be avoided, and savings could possibly be ten to twenty percent.

CAM's Impact on Total Occupancy Costs

CAM represents a 15 to 25 cost structure of effective rent in office space in Bangalore. Higher CAM can considerably erode margins; in case base Rs. 80 per sq ft with CAM of Rs. 20, then the total would come to Rs. 120 loaded. Ignoring this in budgeting is perilous.

Triple net risks passes to the tenants and favors solvent occupiers. Login Realty models depict that CAM optimization can lower costs by 12%. Best-in-class design will reduce CAM in the long run and lower the CAM with metro expansions.

Best Practices for Managing CAM

Review statements quarterly, questioning anomalies. Join tenant associations for collective bargaining. Sustainable practices reduce utilities, qualifying for rebates.

Frequently Asked Questions (FAQs)

What does CAM stand for in commercial leases?
CAM means Common Area Maintenance, covering shared space upkeep like lobbies and parking.
How much are typical CAM charges in Bangalore offices?
Ranges from Rs. 10-25 per sq ft monthly, averaging Rs. 16 in Grade-A properties.
Is CAM included in base rent?
No, charged separately on top, often pro-rata by leased area.
What expenses does CAM typically cover?
Utilities, cleaning, security, repairs, insurance for common areas.
How is a tenant's CAM share calculated?
(Total CAM ÷ Total leasable area) × Tenant's area.
Can CAM charges increase annually?
Yes, often 5-7% linked to inflation, with year-end true-ups.
What should tenants negotiate on CAM?
Audit rights, caps, exclusions for capex, historical data.
Does GST apply to CAM in Bangalore?
Yes, 18% GST on CAM charges.
Are capital expenses part of CAM?
Usually amortized separately, not fully passed through.
How does RERA regulate CAM in Karnataka?
Mandates transparent disclosure and fair allocation in registered projects.