If you work with commercial real estate professionals, you have probably noticed that we speak in a special language of abbreviations and acronyms. Newcomers to the industry take their time wading through the sea of letters, googling behind the scenes to keep up with the lingo. Our new series, CRE Abbreviations Breakdown will do the work for you!
This week we are continuing our series with the Property Management Edition of CRE Abbreviations. These short letter references feature property expenses, professional designations and certifications.
CAM
Common Area Maintenance
CAM expenses are fees paid by tenants to landlords to cover operating expenses for common areas. Common areas are spaces used for or benefited by all tenants and include, but are not limited to, hallways, elevators, parking lots, lobbies, public bathrooms, and building security. CAM expenses are defined in the lease so that tenants know what to expect. CAM is divided proportionally across the tenants in the building. Each tenant’s percentage is calculated by dividing your square footage by the gross leasable area of the building.
OPEX
Operating Expenses
OpEx are ongoing operating and maintenance costs incurred in everyday business of a commercial property. The lease structure determines whether tenants will incur the OpEx as part of gross rent or in addition to their base rent.
COI
Certificate of Insurance
A COI is a document which verifies an insurance policy and summarizes its key aspects and conditions. COI’s protect clients from assuming risks of any costs that might be caused by a contractor or vendor.
AMO
Accredited Management Organization
AMO is a certification for property management firms from the Institute for Real Estate Management (IREM). The accreditation sets companies apart with their high standards required in conduct, ethics and client services. Shannon Waltchack is AMO certified.
CPM
Certified Property Manager
CPM is a prestigious designation from IREM for property managers, achieved after completing arduous coursework and completing a double examination. Fun fact, Shannon Waltchack has three CCIM designees: Len Shannon, Andrew Patterson, and Chelsea Maher-Harris!
Take a look back at our other CRE Abbreviations Breakdown articles on Brokerage and Investments.
