3 Simple Steps Addressing Cybersecurity For Commercial Real Estate – Technology
Lindabury, McCormick, Estabrook & Cooper
United States:
3 easy steps to tackling commercial property cybersecurity
June 25, 2021
Lindabury, McCormick, Estabrook & Cooper
To print this article, all you need to do is register or log in to Mondaq.com.
As technology evolves around commercial real estate, landlords are puzzled: how can new technology be used to modernize buildings and increase profitability by attracting high quality tenants by maximizing the tenant experience, while also attracting those with these new ones Cybersecurity threats associated with technologies are addressed?
The exact problem will differ depending on the type of commercial property a landlord is offering, but the primary concern remains the same, which is how to protect the property from cybersecurity breaches. For example, whether a landlord owns: (i) an air-conditioned industrial building that is used to house cloud servers, store food or medicines, (ii) a multi-tenant retail property with an open WIFI network and a Cloud-based security system or (iii) mixed-use development with state-of-the-art building systems. If the integrated building systems of these properties are exposed and tampered with by a hacker, it could have devastating effects on tenants who seek help from the landlord. What can a commercial landlord do today to prevent this catastrophe and protect their assets and reputation?
Step 1: technology audit
The first step for any commercial landlord is to conduct a technology audit to understand the threats to their respective properties and tenants. With increased connectivity to cloud-based building systems, the Internet of Things, and remote workers, there are multiple access points that can be exploited by hackers. Nowadays it is becoming more and more common that HVAC, electrical, lighting, security and building management systems (BMS) can be accessed remotely during normal building operations. It is important to know how such systems are integrated into the property, what data they contain and how and who can access these systems.
Step 2: Strengthening the immune system
Next, it is critical for commercial landlords to understand how to strengthen their defenses against outside threats. The introduction of internal practices and protocols to update software and hardware, the implementation of regular employee training in the identification of cyber threats including phishing attacks and spoofs as well as the continuous communication with the tenants about the technology and the operating systems of the building from the first rental negotiations contribute to this in giving landlords a clear picture of the technical infrastructure of the property. In return, landlords can comprehensively fend off these threats both internally and externally. Likewise, policies on issues such as cyber threats need to be designed and implemented, including issues such as remote access procedures and how to respond to a cyber incident.
Step 3: assign responsibility
Finally, landlords must take steps to make their tenants responsible for the integrity of the technology systems through rental agreements. These provisions must clearly define the roles and responsibilities of each party in the security process. Topics that need to be addressed in rental negotiations include, but are not limited to, technology-related customization obligations, caps / limits on damage for cyber loss, compensation provisions and cyber-related insurance concerns. In addition, landlords must consider implementing third-party access requirements such as: B. Tenant’s use of providers for installation or repairs to ensure that selected providers use security protocols that match those of the landlord. Let’s not forget that the 2013 Target data breach that resulted in tens of millions of dollars in damage was caused by an HVAC contractor whose lax security protocols allowed a hacker to access Target’s data. Obtaining supplier information and reviewing supplier contracts before starting work is essential.
Unauthorized access to a building system can cause financial damage, disrupt the operation of a tenant and lead to the destruction of property. Imagine if a hacker accessed a remotely accessible temperature control in a cloud server warehouse and raised the temperature by 6 or 7 degrees. The result would be disastrous, and the cost to the landlord could be just as devastating, especially if there is no insurance to cover the losses. A prudent landlord must take the initiative to understand the cyber security threats they face, how to address the threats posed by technology and education, and ultimately the role and responsibility of everyone involved in the lease for the Document property.
Originally published November 3, 2020.
The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.
POPULAR ARTICLES ON: Technology Made in the United States
Explaining Cryptocurrency Ransomware Problem
Kelley Drye & Warren LLP
The recent ransomware attacks on Colonial Pipeline and JBS resulted in a spate of calls to ban Bitcoin (and cryptocurrency in general) in order to enable and promote these attacks.
Non-Fungible Tokens: U.S. Legal Issues to Consider
Withers LLP
Over the course of 2021, beyond the rise of cryptocurrency and decentralized finance, non-fungible tokens (NFTs) have also gained popularity. Digital creators use NFTs to monetize digital creative works.
Application of AI in legal services
Oblon, McClelland, Maier & Neustadt, LLP
A common question asked is why there are so many lawyers. The question is often paired with the question of why lawyers spend so much time on seemingly insignificant tasks …