CAM charges

Definition

Common Area Maintenance charges—fees in commercial leases where tenants reimburse landlords for shared expenses like landscaping, snow removal, and parking lot maintenance. It's how landlords outsource their property bills to the people renting from them.

Example Usage

My lease is $18 per square foot plus CAM charges, which the landlord just increased by 15% after repaving the parking lot I rarely use.

Origin

Commercial real estate leasing terminology from the 1960s-70s

Fun Fact

CAM charges are notoriously difficult to audit and often include expenses tenants didn't expect, leading to the industry nickname 'Catch All Money' among cynical lessees.

Source: Commercial real estate leasing terminology

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contingencies

The 'what if' scenarios that keep project managers up at night and pad contracts with extra zeros. In real estate, these are the escape clauses buyers insert into offers like 'contingent on inspection' or 'contingent on not discovering the basement is haunted.' Essentially, it's the professional way of saying 'but only if everything goes according to plan,' which it never does.

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debt service coverage ratio

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air rights

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highest and best use

The most profitable legal use of a property that's physically possible and financially feasible. It's why your residential lot might be worth more to a developer than your emotional attachment suggests.

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warranty

A seller's promise that their product won't immediately explode or fall apart, though the fine print will explain in excruciating detail all the ways you can void this promise. This legal guarantee assures buyers that goods or property meet certain standards and provides recourse if things go wrong—assuming you kept the receipt, didn't use it wrong, and performed ritual maintenance every third Tuesday. Extended warranties are the profitable cousin that exists solely to make you second-guess your purchase.

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subject property

The specific property being appraised, analyzed, or discussed, as opposed to all those comparison properties. It's like referring to the guest of honor at a party—everyone else is just there for context.

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