Commercial Property Pest Risk Management: Regulatory & Tenant Drivers

Introduction

As buildings become more sophisticated, more densely populated, and subjected to greater regulatory scrutiny, pest risk management has developed into one of the main operational functions for commercial property owners. A variety of commercial properties, including office buildings, logistics parks, shopping malls, data centers, and mixed-use developments, are increasingly at risk of pests that impact the satisfaction of tenants, the reputation of the brand, and compliance results. Property managers are, therefore, moving away from merely responding to infestation cases and towards setting up preventive, contract pest risk management frameworks, which are in line with the long-term asset management strategies.

In March 2024, CBRE announced that it had expanded its integrated facilities management services in the Asia Pacific region to include enhanced pest risk assessments as a regular feature of commercial property inspections. The company pointed out that there had been an increase in client worries about hygiene compliance and pest-related disruptions in the service of, in particular, Grade A office buildings and logistics properties for the food and pharmaceutical sectors. In doing so, the firm has acknowledged that pest control is becoming a standard feature of residential property management contracts.

Logistics and warehousing facilities constitute the most crucial segment. In July 2024, Prologis globally revised its warehouse management policies to include the requirement for stronger pest detection and record keeping at all of its sites, whether new or old. The revision puts more emphasis on getting rid of the problem in the first place, sealing the perimeter, and using digital surveillance as measures that can help decrease contamination risk for those tenants who comply with food safety and export standards.

The retail and hospitality assets also undergo similar pressure. In October 2024, some of the major shopping mall operators in Southeast Asia reconfirmed and signed new pest management contracts for several years following updated local health inspection protocols which increased penalties for hygiene violations. These changes indicate that pest risk is no longer considered a simple maintenance issue but rather a factor of compliance and revenue protection.

For detailed analysis of bird related pest risks within commercial environments, refer to the Bird Repellent Market report and its table of contents.

Major Trends, Drivers and Challenges

Regulatory compliance is the main factor predisposing pest risk management uptake in commercial premises. There has been a significant tightening of hygiene standards by health officials in facilities open to the public or in the vicinity of food. If a company fails to present evidence of pest control activities, it can be fined, its license can be revoked, or there can be disagreements between the company and the tenant. Consequently, landlords give the highest priority to pest management programs that are well documented and can be used as evidence during inspections.

Another major driver is tenant-led expectations. Property managers are required by multinational tenants running data centers, food processing facilities, or pharmaceutical distribution centers to comply with the latter's internal audit standards. Numerous global third party logistics firms have updated their lease requirements as of May 2025, incorporating pest risk mitigation clauses that make property owners and operators responsible.

Preventive and data-driven management is the major trend. Property managers are shifting from periodic treatments to continuous monitoring using digital traps, sensors, and reporting platforms. In February 2025, Rentokil Initial rolled out its PestConnect digital monitoring solution to more commercial properties across Europe, allowing facility managers to get instant pest activity data and compliance reports. This change encourages interventions based on prediction and decreases callouts for emergencies.

The consolidation of services is also influencing procurement behavior. Large property portfolios want single vendors who can handle pest risk in multiple locations. This is good for national and global pest management companies that have standardized service delivery and reporting capabilities. Smaller local providers are either pressured to partner or to concentrate on niche segments.

Bird related pest risk remains a significant concern in commercial properties. Warehouses, retail rooftops, and parking structures are vulnerable to bird nesting and droppings that create hygiene and structural risks. In August 2024, bird deterrent systems were installed in a number of logistic hubs in Western Europe due to tenant complaints and insurance companies' inspection reports. The decision to put up these systems was justified as a measure to protect the property rather than a voluntary upgrade.

The main difficulties are keeping the cost down and not disturbing the operations. Preventive pest risk programs need constant funding and tenant cooperation. Landlords have to weigh up the cost of the services against the rental income especially in markets where prices are highly sensitive. Besides that, pest control measures if not properly planned can interfere with the business activities hence the need for skilled pest control operators.

Another complexity is caused by the fact that different regions have different regulations. Owners of properties that are located in different countries have to comply with local pest control standards as well as reporting requirements in different places, which increases the level of administrative work.

Even though it is not an easy task, managing pest risks is becoming a normal part of the administration of commercial properties. With the increase in regulations on assets and the rise in tenant expectations, the importance of being proactive in pest control is recognized as one of the factors for maintaining the value of the property and the smooth running of the business.

Table of Contents

1. Introduction
2. Definition and Scope
3. Pest Risk Exposure in Commercial Properties
4. Regulatory and Hygiene Compliance Drivers
5. Tenant and Lease Requirement Dynamics
6. Technology Enabled Monitoring and Reporting
7. Vendor and Service Model Evolution
8. Cost and Operational Challenges
9. Outlook and Strategic Opportunities

Related Resources

Facility Management Services Market

Warehouse Management System Market

Pest Control Market