Property owners are increasingly introducing various forms of technology to modernise office buildings and simplify property management. But while buildings are becoming more connected, the data they generate is often unused, leaving owners exposed if small issues evolve into large-scale failures. Harnessing this information is vital – not only to protect tenants from disruption, but to strengthen resilience and safeguard the long-term value of the office asset.
The limitations of traditional BMS systems
For tenants, a modern office is expected to be seamless: lights that switch on when needed, comfortable temperatures throughout the day, clean water, and reliable safety systems. But underpinning this experience is a web of interconnected systems, including fire safety, water management, heating, ventilation, and air conditioning (HVAC), lighting, and core electrical and mechanical infrastructure. These systems are typically administered through a centralised building management system (BMS).
All these systems work together to keep an office running. When they function well, they go unnoticed. But when they fail, the impact to tenants is immediate and visible. For office landlords, the challenge is how to anticipate and address issues with these complex systems before they affect those using the space.
However, while most standard BMS are able to run key equipment, they do not provide feedback on performance. As such, while property owners may have control over building-wide systems, they may in fact be blind to the stress and strain on machinery and equipment. If landlords are unlucky, these hidden stresses can escalate into sudden failures – turning what might have been a manageable issue into a major loss with costly consequences.
Key risks for building owners
When taking on tenants, property owners and their agents assume responsibility for providing a building and operating environment that enables tenants to conduct business efficiently and effectively. If the equipment runs continuously or out-of-hours, over pressurisation of key systems and higher-than-expected use of utilities can go unnoticed. Failure to act on these issues can lead to damage, a less desirable space for tenants, and the subsequent loss of rent.
Specific causes of loss may include:
Fire
Escape of water
Deteriorating air quality
Damage to equipment
Injury to employees
Owners could also face liability arising where tenants are prevented from conducting work within the building:
Liability for tenant business interruption
Loss of revenue (e.g. due to broken contracts, withholding of rent)
Alternative accommodation costs
Disaster recovery costs (including repair and remediation)
Reputational damage
How leveraging data can boost risk mitigation strategies
Effectively leveraging data can help property owners to identify and rectify issues within their buildings before they lead to loss. To achieve this, owners can capitalise on advanced building management tools – integrated platforms that capture, analyse, and translate performance data into actionable insights.
By harnessing already available data within their BMS, owners can monitor the strain and workload of equipment and utilities, and reconfigure how they are used – improving asset longevity and reducing machinery turnover. For example, if the water system falls under unexpected pressure, data can help launch rapid investigations into the underlying problem and efficiently identify the source of the problem.
From a tenant experience perspective, such tools enable owners and their agents to reduce equipment downtime and ensure office facilities are consistently in working order. This can establish a foundation for positive owner-tenant relationships, and can provide invaluable support for lease negotiations, rental reviews, and long-term tenant attraction and retention.
By leveraging enhanced data capabilities and implementing a data-based risk mitigation strategy, owners can demonstrate pro-active risk management. Insurers view pro-active risk management favourably, as such practices will typically reduce the size and frequency of claims. By contrast, owners with a weaker claims history will often face larger premiums and enjoy less capacity at renewal.
Introducing Asset Connect
Asset Connect is Lockton’s new building management tool. By extracting all data points across an office building, Asset Connect provides our clients with clear and actionable insights that pinpoint the next water leak, equipment failure, or energy spike before it grows into a large problem.
Designed to future-proof your building, Asset Connect helps you:
Meet environmental targets by optimising energy and water usage
Pre-empt risks with instant alerts as faults occur to reduce potential losses
Bring efficiencies to building maintenance
Extend machinery life through monitoring equipment performance
Improve insurance coverage through insurer-aligned reporting
For more information about what Asset Connect can offer you, reach out to a member of our team at LocktonAssetConnect@lockton.com
