Smart Buildings, Smart Risks
The modern commercial building is no longer just brick and mortar. Increasingly, properties are designed or retrofitted with smart technologies—systems that connect HVAC, lighting, access controls, elevators, and energy management into centralized platforms.
While these innovations deliver efficiency and convenience, they also create cybersecurity risks that executives can’t afford to overlook. Every connected device is a potential entry point for intrusion—and in a world of smart buildings, that means real estate risk now extends into the digital realm.
Where Cybersecurity Fits In
Cybersecurity in smart buildings focuses on protecting both physical infrastructure and sensitive data. Common risk areas include:
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Building Management Systems (BMS): Unauthorized access could disrupt HVAC, lighting, or security systems.
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Access Control & Surveillance: Digital entry systems and cameras track tenant and visitor activity.
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Tenant Data Networks: Integration with tenant systems creates shared exposure.
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Operational Continuity: Cyber disruptions can halt building operations, affecting both landlords and tenants.
Why CRE Cybersecurity Risks Matter
Cybersecurity is now a core component of CRE risk management, similar to environmental reviews or structural due diligence. Investors, lenders, and corporate occupiers increasingly ask about cybersecurity protections when evaluating properties.
For executives, the implications are clear:
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Valuation: Cyber vulnerabilities can weaken investor confidence.
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Financing: Lenders may factor digital security into underwriting standards.
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Reputation: A breach tied to a property can impact both owners and tenants.
A Shared Responsibility
Cybersecurity is a shared responsibility. Owners, property managers, and tenants all play a role in safeguarding connected systems. While strategies vary, there is now a baseline expectation: smart buildings must be designed and operated with cybersecurity in mind.
The Future Outlook
As properties become increasingly connected, CRE cybersecurity risks will continue to grow. From regulatory compliance to insurance coverage, digital security is becoming inseparable from physical security.
For CEOs, recognizing cybersecurity as a commercial real estate issue—not just an IT issue—is essential to protecting operations, reputation, and long-term investment value.
Citations
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Cybersecurity & Infrastructure Security Agency (CISA) – Smart Building Security Guidance
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Arizona Department of Real Estate – Market Resources
Disclaimer
This content was prepared by the Keyser editorial team. It is provided for educational purposes only and should not be construed as legal or financial advice.
