CRE Companies reviews and negotiates commercial retail leases on a daily basis and is regularly surprised to find how little knowledge is exercised on the CAM/NNN provisions of those leases. CRE Companies believes that these hidden costs can have a profound impact on a lease and ultimately on the value of a Tenant’s Brand.

To illustrate this point, a common lease may estimate NNN costs between $14-$25 per square foot (CAM/TAX/INS) annually. That same sample lease, may include a provision allowing the landlord to include an “administrative charge” of 10%-15% of those NNN.
This “administrative charge” could add approximately $1.40 – $3.75 per square foot annually for that sample lease.

If your brand, like the majority of our clients, occupy hundreds of thousands or million(s) of square feet of leased space, how would $1.40psf – $3.75psf impact the brand’s bottom line?

While we point to the “administrative charge” to illustrate a simple point, CAM/NNN provisions are often complex and require a partner who understands commercially leases and their impact on your individual store and the overall brand.