NEW YORK CITY – Commercial real estate stakeholders aren't leaving data privacy and cybersecurity to chance in 2020. Stakeholders across the industry are clamping down as both become a pressing challenge among connected buildings, Arie Barendrecht, CEO of WiredScore, a CRE tech firm and creator of a digital connectivity rating system for the sector, tells GlobeSt.com.
"In a hyper-connected world, no company will stake its success on occupying a building with an un-secure digital infrastructure," he said. "If your property isn't fortified against cybersecurity threats, you'll risk losing major tenants to landlords who are prepared to meet their tenants' evolving security needs."
Barendrecht expects increased sensitivity to cyber threats in the sector, which will coincide with the continued emergence and reliance on digital devices and the 'Internet of Things,' he said. "It is already transforming our lives at home as devices like Alexa or Google Home become a natural extension, they'll also become a natural fixture in the office," he added.
With greater reliance on technology comes greater security risks. As more of these devices are integrated into building infrastructure, vulnerabilities and exposure to attacks are expected to increase, according to Barendrecht.
Landlords, developers and building owners can get proactive in strengthening their defenses by appointing single-source cybersecurity experts to manage their building's digital infrastructure and safeguards, much the same way that structural and mechanical engineering is handled today, Barendrecht said. "We expect leases will begin to change to include cybersecurity and data privacy clauses given the amount of information that connected and smart buildings will naturally collect," he said. "Putting these physical and legal safeguards around your digital systems is the first and most basic requirement to a more secure digital infrastructure."
Above all, Barendrecht urges CRE stakeholders to take the time to evaluate where buildings currently stand as it relates to the strength of a firm's digital infrastructure and what the needs of tenants may be in five, 10, 15 years. "It's not too late to get ahead of the digital curve and ensure your building is equipped to accommodate 5G and continue to make seamless transitions as buildings become smarter in the years to come," he said.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
