Question
Common area maintenance (CAM) charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of $2.8
Common area maintenance (CAM) charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of $2.8 million square feet, of which 800,000 square feet has been leased to anchor tenants that have agreed to pay $2 per rentable square foot in CAM charges. In-line tenants occupy 1.3 million square feet, and the remainder is common area, which the landlord believes will require $8 per square foot to maintain and operate each year. If the owner wants to cover the total CAM charges, how much will in-line tenants have to pay?
| a. | $3.08 per s.f. in CAM charges, plus their base rent per square foot of rentable area | |
| b. | $2.00 per s.f. in CAM charges, plus their base rent per square foot of rentable area | |
| c. | $1.85 per s.f. in CAM charges, plus their base rent per square foot of rentable area | |
| d. | $4.56 per s.f. in CAM charges, plus their base rent per square foot of rentable area |
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