Pest Control in CAM Reconciliation
Regular pest management services for the building and common areas, including preventive treatments, monitoring, and response to infestations. Covers insects, rodents, birds, and wildlife management in and around the building.
Benchmarks per SF
Source: BOMA EER / IREM 2024
Typical GL Codes
Recoverable Components
- Preventive treatment contracts (monthly/quarterly)
- Common area pest monitoring
- Bird deterrent maintenance
- Rodent control for common areas and building perimeter
Non-Recoverable Components
- Tenant-caused infestations (may be billed directly to responsible tenant)
- Wildlife removal from undeveloped land
- Fumigation of entire building (may be capital depending on scope)
Allocation Method
Pro-rata by rentable square footage. Pest control is typically a fixed-cost contract (same monthly service regardless of occupancy), so gross-up is not appropriate. In retail centers with food tenants, pest control may be allocated more heavily to food-use tenants.
Common Lease Language
“Operating Expenses shall include all costs of pest control and extermination services for the Common Areas and Building, including preventive treatments and monitoring.”
Common Billing Errors
- Grossing up a fixed-cost pest control contract
- Charging the entire building for pest remediation caused by one tenant's operations
- Including pest control for undeveloped areas of a campus in the building CAM pool
- Failing to separate common area pest control from tenant-specific treatments
Year-over-Year Trends
Pest control costs have increased 3-5% annually, largely tracking labor inflation. Integrated pest management (IPM) approaches are reducing chemical use but may increase monitoring costs. Climate change is expanding the geographic range of certain pests, increasing treatment needs in previously unaffected areas.
Additional Context
Pest control is a small but important CAM line item. It becomes significant in retail properties with food tenants, where pest management costs can be 3-5x higher than standard office buildings. Lease clauses should address allocation when specific tenants (restaurants, food courts) drive disproportionate pest control needs.
Related Resources
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