What is a medical lease CAM pass-through fee?
A CAM or operating-expense pass-through is the tenant's allocated share of certain building operating costs under the lease. For a medical or dental practice, the important questions are which expenses are included, how the share is calculated, how increases are handled, and whether the tenant receives useful reconciliation or audit rights.
What should a healthcare tenant review in CAM/OPEX language?
- Whether capital items, management fees, insurance, taxes or other categories are included or excluded.
- How the tenant's proportionate share is calculated and whether the denominator can change.
- Whether controllable expenses have negotiated limits, exclusions or reconciliation procedures.
- Whether the lease gives the tenant meaningful access to supporting statements or audit rights.
How can after-hours HVAC affect a medical office lease?
Some office buildings operate central HVAC on a defined schedule and charge separately for service outside those hours. Practices with early appointments, evening hours, weekend operations, equipment temperature requirements or specialized ventilation needs should confirm the building schedule, controls, charges and any independent-system options before relying on the space.
What is a relocation clause in a medical office lease?
A relocation clause may give a landlord the right, under stated conditions, to move a tenant to another suite. For a healthcare practice, relocation can be more disruptive than for a conventional office because plumbing, electrical work, specialized rooms, equipment, licensing, patient access and downtime may all be affected.
What protections should be evaluated?
- Notice period and when relocation rights can be exercised.
- Whether replacement space must be reasonably comparable in location, condition and functional suitability.
- Who pays reasonable moving, buildout and reinstallation costs.
- How downtime, signage, patient communication and operational disruption are handled.
What other medical-office lease red flags deserve attention?
- The permitted-use clause is narrower than the practice actually needs.
- The lease shifts unexpected HVAC, plumbing, electrical or code-upgrade obligations to the tenant.
- The delivery condition is vague about what the landlord is actually providing.
- TI allowance rules, reimbursement timing or construction-control provisions create cash-flow risk.
- Parking rights are inadequate or subject to change without meaningful protection.
- Assignment or subletting language is too restrictive for a future practice sale, merger or physician transition.
- Personal-guarantee exposure is broader or longer than expected.
- Restoration obligations could require removal of expensive medical or dental improvements at lease end.
- Renewal options lack a workable rent-setting mechanism or notice window.
- The lease timeline does not align with licensing, permitting, construction and equipment installation realities.
Important: Lease language and property-specific conditions should be reviewed with the appropriate attorney and other qualified professionals before reliance. ClinicaMOB uses these issues to help frame the real-estate search and transaction process; it does not provide legal advice.