by Rob Murchison

Remember the movie, Jerry Maguire? Tom Cruise played a sports agent who was fired because he sent a 25-page vision of “Fewer Clients. Less Money,” which went against his employer’s agency business model. His colleagues and boss felt threatened by an idea that could permanently disrupt the status quo and potentially worsen their economic situation, and therefore, Jerry (Tom) was viewed as a rogue rather than a brilliant mind.

“Let us work less hard to sign the clients that we know won’t matter in the long run and work twice as hard to keep the ones who will. I believe in these words, and while they may not yet be true for you, they are true for me. And I ask that you read this with that in mind. I am dictating not what I want us to be but what I wish us to be. There is a difference. You can only get there if I have written this correctly and if you are inspired.”

Jerry’s boss and colleague were mistaken when they fired him. Jerry initially had a great opportunity to gain followers, but every movie needs a main character with a problem…

In today’s commercial real estate industry, maximizing returns increasingly depends on incomplete and imperfect information, which creates risk. Operational technology (OT) provides a plethora of data on real-time occupancy, dwell times, and operational carbon emissions, to name a few. Post-pandemic disruption in our lives has also transformed our work, living arrangements, shopping habits, and social interactions and is now forcing us to rethink how we increasingly leverage these building technology systems to interact with the physical environment in the same way as HVAC, lighting, and physical access control.

In built environments, a self-checkout system uses computer vision and artificial intelligence to provide automated shopping experiences. This allows us to pick up items at a convenience store and instantly scan and process payment without interacting with a person. Advanced technologies regulate the feel of the air on our skin by controlling humidity and temperature. They adjust light brightness and hue to optimize productivity in line with our natural/circadian rhythms. Laser sensors can also map out space by detecting a person’s unique cardiac signature from up to 200 meters away, helping optimize desks and real estate square footage. This allows for better use of space for businesses. There are incredible opportunities in every direction.

Unfortunately, applying technology to the unique snowflake of building OT and IT systems that characterize many of our buildings and portfolios isn’t straightforward. It’s a bit like a South African lion tracker saying…“I don’t know where we are going, but I know exactly how to get there.”

Vendors barrage us, selling us solutions to problems we didn’t even know existed. Most don’t have certain and clear outcomes other than surety that they, the vendor, will be paid. Defining a clear technology strategy to evolve a portfolio can take many directions and, for certain, many resources. Convincing people that the desired strategy will achieve the outcome is important to securing commitment, support, and resources. People must trust you. Getting the right vision and strategy is important, too. Yet you always must start somewhere.

For stuff to get done and for leadership to be effective, you must convince others to follow you. Derek Sivers’ TEDTalk, “How to Start a Movement,” is a great example of how to do this. For me, to follow a leader toward their vision of success, I need to understand and be able to answer a few select questions like, “Hey, where are you going?” I need to believe in their mission that we are doing good, and I need to know that along the way, our effort to succeed will be guided by defining concepts and tools that help guide our decision-making and behavior—the organization’s tone.

I recently read the article ‘How Great Leaders Inspire Followership” by Lin Grensing-Pophal. She wrote about a concept taken from two authors, Marcus Buckingham and Ashley Goodall, who wrote in their upcoming book Nine Lies About Work, “The act of following is a barter … We entrust some part of our future to a leader only when we get something in return.”

Looking back at Jerry Maguire, I learned that having a vision alone isn’t enough—you need to be able to communicate it clearly, concisely, and in a consistent manner to convince those that changing from the status quo won’t destroy them. Lin Grensing-Pophal’s article reinforced to me that trust isn’t enough unless we get something, too. For followers, perhaps that trade is for clarity of direction, principles that can be believed in, and appropriate tools.

For CRE owners to effectively build widespread support from the operational level to the C-suite, developing the right strategy and services is crucial. To begin this journey, assessing the current state of your buildings or portfolio and clearly defining the future state is essential; instead of jumping straight to the “how,” focusing on forming a proper strategy is important. Convincing others to join in a transformation requires a solid strategy, the right influence, addressing real issues, and offering something in return. Taking a proactive approach to building technology involves clearly mapping out your current position and communicating where you intend to go.

by Rob Murchison

Introduction: The Overlooked Opportunity

Labor productivity in the U.S. construction sector has declined at an average rate of 1% per year between 1970 and 2020 (see Figure 1), despite nearly eightfold growth in capital investment over the same period. As an owner or investor in commercial real estate (CRE), you understand the pressure to deliver projects on time, within budget, and without complications. Yet, there’s one critical component often relegated to the sidelines during construction handoffs: building technology. Far from a mere detail, building technology has the potential to either simplify or complicate your operations—yet it’s often an afterthought of the project. The result? A barrage of change orders, bloated budgets, and operational inefficiencies that could have been easily avoided.

Figure 1: Labor productivity in the U.S. from 1970-2020

The Technology Blind Spot: Overcomplicating What Should Be Simple

In the rush to complete construction, building technology frequently becomes an afterthought—introduced too late in the process to be effectively integrated. This oversight turns technology into a source of complexity rather than a tool for simplification. Systems don’t align, data doesn’t transfer seamlessly, and suddenly, you’re faced with an avalanche of change orders that disrupt your timelines and inflate your costs.

Consider this: While your project may not grind to a halt because of the tech infrastructure’s incomplete design or installation, the resulting change order results in unneeded resources consumption and delays. These problems are not just minor inconveniences—they’re red flags that indicate a failure to simplify the technology complexities from the start.

The Hidden Costs: Change Orders That Could Have Been Avoided

The words “change order” are something every head of development and property management dreads. They indicate unexpected delays, extra costs, and the possibility of missed deadlines. In the realm of building technology, these change orders typically happen due to poor planning and coordination, stemming from a lack of understanding. These problems crop up when technology isn’t given enough priority during the planning stage, whether it’s due to overlooking integration points or having a misaligned system.

The financial impact is staggering, with bad data alone being responsible for 14% of rework that estimated to cost the global construction industry $1.8 trillion in 2020 alone. Change orders inflate your construction budget and eat into your operating margins. And the worst part? Most of these change orders are entirely avoidable if building technology is addressed early and systematically.

Simplifying Complexity: The Key to Seamless Handoffs

The solution is treating building technology as a strategic asset, not an afterthought. Simplifying the complexity of technology integration can prevent a cascade of issues later on. Here’s how:

1. Early Involvement of IT and Operations Teams: Involve your IT and operations teams from the beginning, ensuring that technology requirements are baked into the design and construction processes. This proactive approach minimizes surprises and change orders down the line.
2. Comprehensive Technology Roadmap: Develop clear technology roadmaps that outline the systems and integrations needed throughout the building’s lifecycle. A well-planned roadmap simplifies the complexity of technology integration, making the handoff process smoother and more efficient.
3. Standardized Data Formats: Ensuring that all systems use standardized data formats can prevent compatibility issues and streamline the handoff process. Simplified data management means fewer headaches during the transition and fewer costly surprises after occupancy.
4. Continuous Communication: Keep lines of communication open between construction, IT, and operations teams. Regular check-ins ensure that any potential issues are caught and addressed before they necessitate costly changes.

The Trillion-Dollar Question: Can You Afford Not to Simplify?

In today’s competitive CRE market, the ability to manage complexity—particularly technological complexity—can make or break your bottom line. The companies that excel are those that recognize the power of technology to simplify operations, not complicate them. They avoid the costly change orders that come from neglecting technology, and they deliver assets that operate smoothly from day one.

So, ask yourself: Can your portfolio afford the ongoing costs of sidelining technology? The answer is clear—simplifying technology integration isn’t just smart; it’s essential for protecting your assets and maximizing returns.

Conclusion: Time to Rethink Your Approach

Building technology should never be an afterthought in the construction-to-operations handoff. By addressing it early and simplifying its integration, you can avoid unnecessary complications, reduce costs, and ensure that your assets operate at peak efficiency from the moment they open their doors.

Asset managers, heads of IT, and facility managers must rethink how to approach technology. It’s time to stop treating it as a secondary concern and start recognizing it for what it is: a critical element that can drive value, streamline operations, and safeguard our investments.

Closing Thoughts: Leading with Simplicity

Looking ahead, the most successful CRE owners and investors will be those who master the art of simplifying complexity. By prioritizing technology integration, they will avoid costly errors and ensure their properties are not just functional but future-proof. Let’s lead the industry in making technology an integral, simplified part of every project handoff—because, in the end, simplicity is the ultimate sophistication.

by Lachlan MacQuarrie

Every year, property, asset, and portfolio managers’ minds turn to budgeting. It’s a race to get a functioning budget in place—sharing drafts and key assumptions with team members and colleagues, setting review meetings, managing version control, quality control, and the ever-important comparison of net operating income (NOI) this year over last. Ultimately, property managers and asset managers are seeking owner approval.

Budgeting isn’t difficult but budgeting accurately to reflect a future outcome 6-18 months ahead of the end of the year is challenging. Competent property managers can readily forecast contracts, property tax, insurance rates, and capital spend—all these items are mostly predictable, controllable, and can be largely scheduled and planned. However, when the blend of a budget’s controllable elements mixes with the less controllable events—such as leasing, unplanned emergencies, unforeseen market factors, or understanding how to invest in new strategies and capabilities tackling cybersecurity breaches—it can be difficult to reflect the financial realities that a specific course of action produces. Of course, sometimes the owner is an unforeseen factor, too!

Budgeting is an exercise in communication. Approval is sought from levels above—levels which scrutiny increasingly narrows and often an understanding of the nuances of day-to-day operational elements narrows too. Owner’s delegate budget preparation to managers, and despite the owner’s ultimate accountability for the results, sometimes complex elements of property budgets can receive limited airtime. Limited airtime impacts a manager’s ability to present the case, context, or importance of the elements that make up the complicated world of running real estate well. Sometimes, poor communication about a topic—or even none at all—can result in great initiatives not being approved in budgets.

Unfortunately, driving performance and creating value are more complicated than ever in today’s market complexities, and herein lies some new problems. As managers consider key elements of today’s modern real estate, one area in particular jumps out—the increasingly complex world of how technology has grown in modern building systems. Networks, sensors, smart building systems, fault-detection, AI, and many other important technologies are present today, but there is one topic that eludes effective implementation: cybersecurity. Evolving and internet connected systems, which aim to improve building efficiency, build new customer experiences, and to tackle new demands of ESG, often elevate new risks into connected systems. Technology can increase the potential exposure to less friendly cyber actors, and it’s not being protected properly.

Generally, technology is providing managers new ways to gather, interpret, and analyze data to tackle the problems of operations. It’s an amazing time for property managers, but also for customers and owners of real estate. Unfortunately, technologies’ complexity creates challenges and opportunities for property managers both in terms of awareness and understanding, but also in terms of executing and operationalizing to create value.

Fortunately, many property managers today are putting in effort to understand these new realities. Managers are investing time to learn about how technology and smart-enabled buildings can drive performance goals and increase the long-term value of property. Building awareness and understanding in areas such as advanced performance goals for ESG, efficiency aimed to better manage costs, or tackling cyber risk, these all take time to acquire new knowledge—well before this knowledge can be applied or shared with owners. Unfortunately, this is not a straightforward journey for managers and often consultants, vendors, and experts are retained to help. It takes time to develop an understanding of the opportunities to use technology, to assess building and system capabilities, and to tackle cybersecurity.

Budgets forecast how an asset is expected to perform. However, budgets also provide the recipe for how the ingredients included will help achieve the result. Budgets are prepared, discussed, and presented for approval, often with meaningful conversations with asset managers and owners. However, time is short, people are busy, and sometimes preparation for open dialogue can take a back seat to focusing on next year’s NOI. Meaningful understanding of the priorities, or the value of initiatives, or capital investment can be blurred by the financial results. Too often, poorly conveyed messages around technology are lost in the big picture, and useful conversations about the role of technology and supporting elements are mixed into optional and “nice to have” initiatives—failing owners in building the foundations necessary for the future.

Successful managers can take different steps in building the case for technology and risk management for smart strategies and cyber risk mitigation. Awareness and understanding should begin well before a budget presentation.

Most owners hope for meaningful engagement with their managers, and the ideal alignment comes from mutual goal understanding supported by transparent engagement that occurs with candid and action-oriented dialogue. Managers often inadvertently minimize future-oriented dialogue and focus on reporting results of operations. Effective managers should take the time to engage owners in strategic discussions supporting operational performance, value creation, as well as to discuss technology risk and the owner’s appetite around specific strategies. Given that the use of technology, data, and risk mitigating platforms—such as cyber risk platforms—are typically a new topic of engagement, managers should invest more time and adopt a change management-driven approach to build ownership support.

Starting with open-ended dialogue—asking technology-oriented questions of owners and asset managers about their interest, knowledge, and awareness, their approach to risk, and their appetite to face it unmitigated vs mitigated. Open dialogue that emphasizes listening, couched in a curious exploration of opportunities, and that has a clear outcome around building a strong understanding of owners’ needs is a good place to start. Take pains to book sufficient time to address technology’s complexity—often managers fail to book sufficient times with owners to talk about their property challenges and more time is spent in competing areas, such as property and market tours, owner / manager socializing, and new and evolving reporting needs. Authentic dialogue provides a refreshing opportunity to strengthen trust and relationships with owners, and time is needed to build it. Explaining the manager’s perspective, approach, and early tactics in technology-oriented elements also illustrates to owners the value that is secured by employing a skilled manager who is investing in learning. Additionally, during these conversations, managers can share with owner’s their key findings of investigations across other assets they have learned about, interesting white papers that tackle opportunities around technology and risk, and sussing out and gauging owner readiness to experiment, invest, and tackle opportunities.

Expressing a point of view around technology can be challenging. Other ways to build interest include inviting owners and asset managers to jointly attend external discussions, webinars, forums, and conferences about technology. Conferences like RealComm and IBCon are great places to reinforce how the role of technology is changing for real estate assets, as well as to highlight peer and competitive strategies. Time spent together with an owner is also a great bonding opportunity useful in a long-term relationship.

Outside of conferences and face-to-face dialogue, other opportunities to build the awareness to lock in a business case for technology include securing pilot dollars to engage with subject matter experts (SMEs) to explore opportunities, problems, and possible initiatives. Shifting strategy from “tell me” to “show me” is particularly effective. Running early pilots with outcomes that strongly support a business case tied to owners’ goals is strong proof point and reinforces the value of innovation. Outside of consultants and sophisticated vendor-supported pilots, managers can also work with their insurance providers that often employ cybersecurity experts and provide insurance products aimed at mitigating economic risk.

Other opportunities for managers include building strong internal capabilities that extend from central support services straight through to local team expertise. Managers can build solid understanding and effectively raise “triggers” for local asset teams through training, internal operations conferences, and site roadshows aimed at educating employees—well in advance of, or concurrent with, budget season. A fresh filter applied by a manager can sometimes be leveraged effectively in early budget dialogue with owners and asset managers.

There is much value in addressing the complexity of technology and cyber risk initiatives early in any budget process, but starting communication focused on business needs with owners is a surefire way to secure budget dollars. This article only touches the surface of using effective communication to address complex topics. Purposefully driving engagement versus hoping an owner will simply understand and approve a budget line item is a better approach. Thinking about the value of effective change management, using a model like ADKAR to build commitment and understanding in a budget process can be helpful too. The core elements of this model start with raising awareness, building desire to adopt/change an initiative or a circumstance, and elevating knowledge to secure alignment for action. Understanding and desire provides the groundwork to secure meaningful approval. Making sure that conversations with owners don’t occur in the last months of the summer when budgets are usually being prepared helps too. “What has to be true for this budget to be approved?” Managers who can answer this question will be rewarded. Working backwards from budget distribution dates and building in appropriate periods of exploration can give owners sufficient time to understand the thrust of technology tactics appearing in a budget. Time spent presenting business cases, engaging owners, and allowing owners and asset managers to ask meaningful questions is time well spent to build appropriate engagement for the budget.

Finally, managers should remember that any effective business case to invest in an asset—without sufficient understanding themselves of how value will be created—is an easy way to ensure that an initiative will not be supported. Managers who prioritize asking for help and are open to being vulnerable to one’s own gaps in understanding or skill are well set up to be armed with the knowledge, facts, and information necessary for solid technology and risk-oriented conversation. Armed with a solid point of view is a great place to start any budget-oriented initiative decision.

Intelligent Buildings is a team of commercial real estate technology experts, providing strategic advice, building assessments, and 24/7 managed services. They can guide managers and owners alike in adopting and operating effective strategies that improve their asset performance and value and reduce the risk of cybersecurity threats in today’s real estate—including how to work these goals into their budgets.

by Michael Magee

Reports across the internet indicate that data breaches across industries often cost $4 million or more, with system restoration of a manufacturing system estimated at around $2.5 million. While exact numbers for the cost of a commercial office building dealing with a compromised building automation system (BAS) are difficult to define, it’s clear that cyber incidents are typically costly and unforeseen. Even a minor event can severely strain a property’s budget. Additionally, the potential risk to life safety and the loss of trust from current and prospective tenants can profoundly affect the long-term financial health of the property.

The risk and unpredictability of cyber events challenge even the best budgets. Thankfully, there are actions that should be included in an operations budget. With many properties moving into budget season, Intelligent Buildings (IB) wanted to share some of the data-driven recommendations we are preparing for our customers:

Allocate budget to update the operating systems on your servers.

IB’s monitoring and site assessment activities find that 80% of properties have at least one system running on an operating system (OS) that is or will be unsupported by the end of 2025.

• All support for Microsoft (MS) Windows 10 ends in October 2025, and Server 2012 loses its support in 2026. Upgrading from Windows 10 to 11 may be free; however, budgets for IT admins and systems vendors on site should be accounted for. Server 2012 may be more problematic, as many system applications may need to be upgraded to run on a newer version of MS Server.

• Mainstream support for Server 2019 ended this year, and full support will end in 2029. Since this will likely trigger a number of system upgrades. Starting to plan for this now will have less impact on future budgets.

• In addition to the primary systems (BAS, access control, video surveillance), ensure you are checking the systems that you infrequently interact with including elevator controls, digital signage systems, indoor air quality (IAQ), and metering systems.

Increase or allocate additional budget to your IT support administrator to include the administration of the operational technology (OT) system servers.

IB has identified this as a grey area in many vendor service contracts. Vendors may keep their applications up to date, but they often rely on the property staff to update the operating system and care for the server, while the owner believes they are paying the vendor to manage the server. As a result, the server falls behind in updates and security patches.

• Plan for updating your IT support contracts to take over admin support of your system servers. They better understand your risk tolerance, are specifically trained, and are better positioned to administer these devices.

Invest in or update your firewalls and antivirus/anti-malware (AV/AM) protecting your servers.

IB deploys a zero-plus platform that blocks all external attacks. Even with a zero-trust solution blocking all external attacks from the internet connection, the IB antivirus platform reports suspicious activity at the endpoints. This could be dormant code or, more likely, malicious code introduced by a transient device used on other networks (USB, tech computer).

• Firewalls age like other IT equipment and need to be replaced on a schedule. Determine if your firewall can be updated or needs replacement, then verify that its rules are configured to be restrictive and OT-specific.

• AV/AM provides protection at the endpoint. Viruses and attack methods are constantly evolving, so your AV/AM needs frequent updates to stay current.

• Cyber defense requires a layered approach that includes protecting the entry (firewall) and the endpoint (antivirus) that should be coordinated with your IT support administrator and system vendors.

Allot funding to deploy a remote backup platform.

When IB reviews how systems are backed up, we find system techs often back up the application and database locally on the existing server or to a flash drive left in the desk drawer. Backups to the server are often done to the same physical drive as the application. So, if the server crashes, the backup is usually lost. Flash drives get lost or written over unless properly handled.

• Give yourself peace of mind and budget for a cloud-hosted backup service.

• Backups should be captured at least once weekly.

• Choose a platform that periodically does a restore test on the backup.

Provide training and raise awareness.

IB believes training and awareness programs are crucial to cybersecurity because they help prevent human error. Informed users are better equipped to recognize and avoid phishing attempts, malware, and other cyber threats. Additionally, a culture of cybersecurity awareness promotes proactive behavior and adherence to security policies, reducing the overall risk to the organization.

• Budget for internal or external resources to host regular cybersecurity campaigns through training sessions, workshops, and awareness campaigns.

• Promote your cybersecurity policy and ensure all vendors that connect to your network have agreed to follow it.

Anticipating the actions to secure building systems will impact the operations budget far less than an actual cyber event. With good security measures, the advantages of using technology to help run buildings can still outweigh the risks. Many building owners understand the importance of having a good cybersecurity plan. The challenge seems to be making sure you have enough budget to implement it.

by Rob Murchison

CRE Tech is complex, but you are not free to abandon it because you don’t understand it.

In today’s rapidly evolving landscape, the intersection of technology, data, and AI within building technology can indeed seem overwhelming. The sheer volume of new tools, platforms, and innovations can make it difficult to know where to start or how to navigate this complexity, especially during budget season. However, it’s important to acknowledge that while you may not be expected to fully grasp every intricate detail or solve every tech-driven decision independently, opting out or ignoring these advancements isn’t viable.

Why You Can’t Abandon It:

1. Technology as a Competitive Advantage: Technology integration in CRE building management is no longer a luxury—it’s a necessity. Ignoring it because of its complexity can disadvantage you and your assets. Competitors who embrace and understand these tools will likely surpass others who don’t acknowledge the benefits of operational efficiency, tenant satisfaction, and overall asset performance.
2. Collaboration is Key: You don’t need to be an expert in tech to make informed decisions. Leverage the expertise around you—whether it’s internal teams, external consultants, or CRE technology experts like Intelligent Buildings. Collaborating with the right experts allows you to harness the power of technology without being bogged down by the complexities.
3. Adapting to Change: The CRE industry is facing an inevitable shift toward smarter buildings and more sophisticated technology. Avoiding these changes because they seem daunting only delays the inevitable. By gradually immersing yourself in this new reality, even if it’s just by learning the basics and asking the right questions, you position yourself to adapt and thrive in this new tech-enriched environment.
4. Lifelong Learning: Continuous learning is essential in an era where technology is constantly evolving. Approach technology and AI not as insurmountable challenges but as opportunities to expand your knowledge and enhance your decision-making. Embrace a mindset of curiosity and openness, and you’ll find that complexity becomes less intimidating over time.
5. Leadership in Uncertainty: True leadership isn’t about having all the answers—it’s about guiding your team and your assets through uncertain and complex situations. By engaging with technology, even when it feels outside your comfort zone, you set an example of resilience and forward-thinking that can inspire others in your organization to do the same.

by Chad Andre

In the realm of building management, it’s crucial to make sure vendors meet the specific requirements set out in their contracts. This is key to maintaining operational efficiency, occupant comfort, and aligning with larger goals like sustainability and technological advancement. Vendor Validation is the process of verifying that vendors adhere to their contractual obligations, ensuring that the building’s systems and infrastructure function as intended. Here’s how to effectively manage this process:

Defining Clear Contract Requirements

The foundation of successful vendor validation is setting clear expectations from the outset. This means outlining technical specifications, performance standards, regulatory compliance, and how new systems will integrate with what’s already in place. For instance, when specifying requirements for HVAC systems or smart building technologies, it’s vital to include details on energy efficiency and compatibility with existing building management systems (BMS). This clear documentation helps communicate what’s expected and serves as a standard against which performance can be measured.

Evaluating Vendor Capabilities

Once the requirements are set, the next step is to assess whether potential vendors can actually meet them. This involves a thorough review of the vendors past performance, financial health, and relevant experience. Consider previous work on similar projects and the vendors grasp of current technologies. Visiting sites where the vendor’s systems are already operational can offer valuable, practical insights into their capabilities and reliability, ensuring they can deliver on what they promise.

Establishing a Rigorous Validation Process

A robust validation process is essential to confirm that vendors fulfill their contractual commitments. This includes setting specific key performance indicators (KPIs) and conducting regular inspections, tests, and performance checks. For example, if energy efficiency is a key criterion, regular energy audits can verify that the systems meet the agreed standards. Thorough monitoring ensures compliance and highlights any areas where improvements are needed.

Promoting Transparency and Accountability

Transparency and accountability are critical components of the vendor relationship. It’s important to maintain open lines of communication, provide regular updates, and ensure all parties clearly understand the contract terms. Additionally, having a structured approach to managing deviations from the contract, including potential remedies or penalties, is crucial. This clarity helps prevent misunderstandings and promotes a collaborative approach to resolving any issues that arise.

Fostering Continuous Validation and Improvement

Lastly, creating a system for ongoing validation helps maintain compliance over the long term. This includes regular reviews of vendor performance, updating contract terms as needed, and staying engaged with vendors to address new challenges. Viewing vendor relationships as partnerships focused on continuous improvement can lead to better outcomes, ensuring that vendors consistently meet their obligations and contribute to the project’s overall success.

By following these principles, building managers and owners can effectively manage vendor validation, ensuring high-quality products and services that meet their specific needs and contractual requirements.

by Andy Schonberger and Michael Magee

“Compliance” is about as fun a word as “audit” and immediately brings to mind a checklist and a sour-faced auditor with a clipboard who wants to audit you as much as you want to be audited. Say this to a property manager or anyone who manages tech in buildings like we do, and you will likely get a frown or suddenly have staff call in sick.

But we must be aware of multiple federal, state (provincial, for my Canadian connections!), and local compliance requirements and the list seems to be getting longer. To list off a few of these fun areas:

• Tenant compliance: On leases, insurance, rent payments, fit-out compliance with building codes and more.
• ESG reporting and compliance: A growing list of local and state jurisdictions requiring disclosure of energy and carbon usage, creating risk for building owners that have not invested in basic system visibility or the ensuing efficiency measures.
• Cybersecurity compliance: We will not be able to hide breaches forever. New regulatory compliance requirements are rolling out, the largest of which is the SEC’s requirement for disclosure for “material” breaches for public companies.
• Building codes: Not a new area for development teams, consultants, and contractors to be aware of, but they are advancing into new areas in ESG and cybersecurity. For example, the 2023 update to the National Electrical Code now asks electrical inspectors and design reviewers to consider the impact of a cyber event on connected electrical equipment to ensure it meets industry cybersecurity standards.

What does this all mean to building owners, developers and operators?  Most of these changes are incremental to previous regulations and mean we need to find more efficient ways to stay compliant.  That generally means new tools, automation, and connectivity requirements are needed to track and deploy programs to demonstrate compliance.  It is more important than ever for the digital infrastructure of the building to securely connect to these data sources so compliance teams have easy, secure access to the data they need.

Here’s an example: We recently had a client ask us about creating an audit trail for their risk team that tracks not only who physically entered the building during a specific period but also who’s connected to it digitally. Without managed internet access, fulfilling this requirement is nearly impossible, considering that building engineers, contractors, property managers, and even guests may have access. Offering this service is part of what we do, and its benefits extend beyond mere compliance. Though, compliance demands often drive the development of new services that enhance audibility and risk evaluations.

Easy enough to say in a post like this, but how? We use the SONIC (i.e., secure, open, normalized, interoperable, converged) framework for the technology in buildings.

Why take my word for it? Here is the General Services Administration (GSA) Administrator Robin Carnahan explaining their use of the SONIC framework:

“Security comes first because that’s a non-negotiable – whether we own or lease a building, we need to know that every system is secure because we have to protect our government systems and information.  In fact, as of this year, we’ve invested in improving our cybersecurity posture in over 500 locations by implementing zero-trust architecture… and we’re going to keep ahead because we know that’s the only way to effectively and proactively minimize risk.  Open – means we want systems that are easy to use, scalable, and non-proprietary and using standardized, open APIs. This reduces barriers and drives competition and innovation while streamlining how we manage our portfolio.   We also need systems that are Normalized, Interoperable, and Converged. We want great technologies that use a single network, simplify how our folks interact with them, and make it easier to make smart decisions. The good news is that we’ve been using this SONIC model for years. To date, about a third of our building meters and control systems are connected to the GSA Network and more are coming online every year.”

Reach out to us for a guide describing these principles. Each one of these framework elements can be a can of worms in our industry if you aren’t sure how to navigate them. We have decades of experience deploying this framework in some of the largest portfolios on the planet and can help you, too.

by Jacob Nicosia

Understanding the Challenges in Vendor Management

In today’s interconnected business environment, companies are increasingly reliant on external suppliers for a wide range of goods and services. This dependency makes structured vendor management critical to ensure seamless operations and sustained business success.

Effective vendor management is essential for maintaining operational efficiency. Poor vendor management can lead to delays, increased costs, and compromised quality, impacting overall business performance.

Our Solution: The Pyramid Approach

This structured framework organizes vendor management into three distinct levels: Strategic, Tactical, and Operational. The hierarchical model ensures a comprehensive and systematic approach to managing vendor relationships, addressing every aspect from long-term strategic alignment to day-to-day operational tasks.

Our Pyramid Approach to Vendor Management involves a thorough evaluation and tailored recommendations to support both strategic and operational vendor management. This includes:

• Vendor Audits: Initiating comprehensive vendor audits and a web-based vendor management audit.
• Onsite Assessment: Conducting an onsite assessment to determine the current state of vendor management.
• Readiness Report: Providing a readiness report with budget guidance, system changes, upgrades, and recommendations for improving vendor management practices.

Our approach equips the management team with a deeper understanding of their current practices, pinpointing areas that need improvement and identifying available data to optimize vendor relationships. We provide a recommended action plan tailored for short-to-medium-term enhancements in vendor management. Our comprehensive framework is designed to maximize utilization, integration, and efficiency in vendor relationships. By implementing this structured approach, clients can experience immediate benefits, including significant time and cost savings, as it ensures all aspects of vendor management are addressed systematically.

IntelliNet Managed Services

Our IntelliNet Services’ structured approach to vendor management enhances security and operational efficiency of your current vendor relationships by integrating advanced cybersecurity measures and proactive network monitoring in each level of the Pyramid Approach:

Strategic Level:

• Network Security & Secure Remote Access: Secure software-defined network connections for remote access, aligning with long-term vendor management goals by ensuring secure interactions and data protection.
• Server Resilience – Backup Antivirus & Recovery: Centralized data backup and enterprise-grade antivirus for server resilience, critical for strategic planning and protecting critical vendor-related data.

Tactical Level:

• Network Vulnerability and Asset Monitoring: Continuous device inventory monitoring, malware threat notifications, and vulnerability analysis to manage vendor performance and resolve issues effectively.
• Security Operations Center (SOC): 24/7 incident monitoring, threat detection, and mitigation support for day-to-day security management of vendor interactions.

Operational Level:

• Remote Monitoring and Management (RMM): Proactive patch management and expert support for servers and workstations, ensuring efficient processing of vendor-related operations and compliance with contracts.
• Network Operations Center (NOC): Monitoring firewalls and switches, supervising the network lifecycle to ensure operational integrity and vendor management efficiency.

The pyramid approach not only maximizes efficiency but also fosters stronger relationships with vendors, leading to better service and results. As the commercial real estate industry continues to evolve, adopting innovative strategies is essential for staying competitive and achieving long-term success.