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Question
Expense: CAM
Harolds Video Hideaway sells movies and Hollywood memorabilia in a 1,000 square foot store at the Starlite Mall in an urban location on the West Coast. The mall has 1,000,000 feet of total gross leasable area including 450,000 feet of inline space and 550,000 feet of anchor space. Expenses this year are expected to total $20,000,000. In total, the three anchor tenants contribute $2,000,000 to expenses. Assuming Harolds pays full pro rata CAM charges, what is Harolds expected total annual CAM contribution? Harold has negotiated a CAM cap of $25 per square foot. Does the cap lower Harolds costs in the current year?
Answer
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