What new operating expense line item is introduced for industrial properties?

• A. Common Area Maintenance
• B. Management Fee
• C. Property Taxes
• D. Insurance

Answer: (A)

Common Area Maintenance is the new line item because it accounts for the shared costs of operating and maintaining spaces that all tenants use in an industrial property—things like parking lots, drive aisles, loading areas, landscaping, lighting, security, and the utilities that serve those common areas. Tenants usually pay CAM in addition to base rent, allocated based on their share of the space (often by square footage). The landlord estimates CAM each year and reconciles actual costs at year-end. This separate line item helps distinguish shared, property-wide expenses from the tenant’s own rented space. The other items—property taxes, insurance, and management fees—are standard operating costs that aren’t the “new” addition used to allocate shared-area costs.