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Everything You Need to Know About TICAM in 3 Minutes or Less

What is TICAM and How Does It Work?

TICAM is a business real estate acronym standing for Taxes Insurance & Common Area Maintenance. As the acronym suggests, TICAM is part of a TRIPLE net Commercial Lease where tenants pay for their proportionate share of the taxes, insurance, and common area maintenance (such as trash collection, parking lot lighting, janitorial upkeep of common areas, landscaping, etc.).

How is TICAM Calculated and Who is Responsible for Payment?

closeup of commercial lease agreementTICAM is calculated by taking the total expenditure of a commercial property and dividing it evenly over the total square footage of the property or properties. The landlord pays the TICAM, but all tenants currently using the property generate the amount, and this fee is due in addition to their monthly rent.

Keep in mind, well-maintained facilities and business parks with manicured grounds and nicer parking lots will have higher TICAM fees than lesser properties, but better looking properties generate greater income.

A Real Life TICAM Example

If a commercial property floorplan has 4 bays at 30 feet by 110 feet and 1 bay at 40 feet by 100 feet, the square footage comes to approximately 17,600. For this example, the property has a TICAM of $2.58 per square foot.

At 17,600 square feet and with TICAM at $2.58, the amount comes to $45,408 annually or $3,784 monthly.

If the commercial property rounds up to 18,000 square feet and with TICAM at $2.58, the amount comes to $46,400 annually or $3,870 monthly.

So, based on the above calculation, a tenant’s TICAM can range from $3,784 to $3,870 per month in addition to base rent for this property. The exact number will be determined during signing and is subject to change.

Craft Commercial

two business partners shaking handsWhen it comes to negotiating lease terms and rental agreements, you need experienced Commercial Real Estate Agents you can trust to help your company avoid potentially overpaying thousands of dollars each year for the property you need most.

Our first-class agents at Craft Commercial know the ins and outs of the Commercial Real Estate Market and guarantee you the best service possible. For more information or to schedule an appointment with us today, contact us at 919-446-5000 or email us at info@craftcommercial.com.

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