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Seek out reduced CAM costs


When a shopping center cuts its costs, tenant Common Area Maintenance charges go down, and those savings go right to a retailer’s bottom line. If you haven’t done so already, ask your landlord what is being done to curb CAM costs. According to Larry Jensen, executive VP of Atlanta-based Jones Lang LaSalle, the mall owner and/or manager should be examining such things as:

Janitorial services. To reduce janitorial and utilities charges, malls should consider compressing the cleaning hours, adjusting schedules and trying to avoid having crews in the mall in the middle of the night.

Mall hours. More and more mall owners are cutting back on mall operating hours, which will affect lighting and HVAC usage, and lower CAM costs.

Utilities. Mall lighting and HVAC expenses, when managed correctly and with an eye toward maximum efficiency, can save owners and tenants a lot of money.

Escalators. Shut escalators off when no one is in the mall.

Security. Is there a way to reduce security hours or personnel without affecting safety?

There are plenty of other line items that bear investigation by the landlord, according to Jensen, and it’s important that the retail tenants be proactive in making sure everything is being done to reduce CAM charges.

“I have a vested interest in the retailer, and he in me. We have to work together,” Jensen explained.

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