CAM Charges, Revenue Share, and Fitout Contributions: Reading a Mall Term Sheet Without Surprises

Introduction

Indian mall leasing conversations often anchor on a single headline number—base rent per sqft. That number is dangerously incomplete. Two centres quoting ₹180 vs ₹165 can invert economically once you normalise CAM, marketing levies, revenue share mechanics, fitout contributions, and rent commencement triggers.

This guide is a practitioner’s walkthrough of how to read a mall term sheet like an operator and modeller—not like a press release.

Build an all-in occupancy line (the only comparison that matters)

Start from cash out the door each month (or each sales rupee), including:

• Base rent and any stepped ramps
• CAM (fixed + variable components)
• Marketing / promotion fund (mandatory vs elective)
• Revenue share, if applicable, with defined revenue base
• Utilities and mall-specific charges (chilled water, common power allocation)
• Fitout amortisation (explicit or implicit)

CAM: demand line items, not a lump label

Ask for category splits: housekeeping, security, common electricity, chilled water, waste, pest control, capital reserves, and management fees. Then ask what is fixed vs variable through the lease and what audit rights you have when CAM spikes.

Historical CAM variance is a signal of landlord governance—two malls with identical quoted CAM can behave differently in year three.

Revenue share: breakpoints, exclusions, and accounting wars you prevent upfront

Model breakpoints with realistic ramp curves—not straight-line sales from month one. Define exclusions clearly:

• Wholesale / B2B sales (if any)
• Delivery aggregator revenue treatment (gross vs net; fees)
• Gift cards, vouchers, and refunds
• Inter-store transfers in multi-brand operators

Most revenue-share disputes are definitions problems, not maths problems.

Fitout contributions and landlord works: tie money to milestones

Landlord capex should be tied to deliverables: slab readiness, power at panel, shaft completion, fire barrier completion. Tie rent-free and rent commencement to measurable landlord completion—not “practical completion” without a punch list.

Negotiation playbook: questions that signal competence

• Show me CAM actuals for the last 24 months by category.
• What marketing spend is mandatory vs optional, and how is it reported?
• What happens to CAM if anchor occupancy shifts materially?
• What are the true ramp assumptions used in revenue share bands?

Conclusion

Great centres deserve great maths. Bring structured questions and external benchmarks; pair term-sheet discipline with location evidence so you are not optimising rent inside a weak catchment.

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