Commercial property owners now face digital risks alongside physical ones. Modern buildings rely on connected systems that hackers can target. Understanding cybersecurity risks in commercial properties helps protect your tenants and assets. Strengthening your security measures also ensures your commercial property insurance truly covers the threats that matter most.

Why Cybersecurity Risks in Commercial Properties Are Rising

Commercial buildings now operate through connected systems that control HVAC, lighting, access, and safety functions. These systems often share networks with tenant data and financial records, giving hackers multiple ways in.

In 2025, IBM’s Cost of a Data Breach Report noted that the average global data breach reached over $4.4 million in losses. For property owners, this shows how a single weak point can lead to serious downtime, financial loss, and damaged tenant trust.

Common Weak Points in Building Cybersecurity

Here are the areas that most often expose buildings to attacks:

  • Legacy software and protocols – Many building management systems still run on outdated operating systems or unencrypted protocols.
  • Shared networks – When tenant Wi-Fi, property management systems, and OT networks share the same connection, one breach can spread everywhere.
  • Weak passwords and access policies – Default logins, reused credentials, and lack of multi-factor authentication remain top causes of unauthorized access.
  • Third-party vendor access – Maintenance teams and contractors often have remote entry permissions that, if not managed, become backdoors for cyber intruders.
  • Unmonitored data storage – Building systems collect tenant and operational data, often stored without proper encryption or retention policies.

Each of these vulnerabilities can lead to data theft, equipment manipulation, and costly insurance claims.

Real-World Consequences of a Cyber Breach

When attackers compromise a commercial property’s network, the impact can be immediate and costly. They can shut down building systems, disable alarms, or manipulate temperature and lighting controls, disrupting tenants’ daily operations. In severe cases, essential services like elevators or access systems can fail, leading to safety hazards and forced evacuations.

A single breach can also expose tenant records, payment information, and security footage, causing reputational damage and possible legal action under data privacy laws. Financial losses mount quickly from business interruptions, emergency repairs, and liability claims, disrupting budgeting accuracy and long-term financial planning.

Risk Mitigation Strategies for Building Owners

The best cybersecurity defense in commercial real estate begins with proactive planning:

  1. Segment your networks – Keep OT systems separate from business IT and tenant Wi-Fi.
  2. Use strong access controls – Enforce multi-factor authentication and revoke old accounts immediately.
  3. Regularly update and patch systems – Outdated firmware is a common exploit path for attackers.
  4. Conduct regular audits – Schedule comprehensive security audits to identify weaknesses in your building systems, vendor access, and data handling practices.
  5. Audit vendors and contractors – Require strict cybersecurity standards and time-limited remote access credentials.
  6. Monitor 24/7 – Deploy network monitoring tools that detect abnormal traffic or command behavior in real time.
  7. Review insurance coverage – Ensure your commercial property insurance includes protection for cyber-related physical damages or business interruptions.

Cybersecurity isn’t a one-time checklist; it’s an ongoing process that should align with your operational and financial risk management.

Protecting Your Property and Tenants

Cybersecurity and property management are now inseparable. By addressing cybersecurity risks in commercial properties head-on, you reduce exposure to downtime, tenant loss, and liability claims. Combining solid cybersecurity measures with reliable insurance protection helps your property stay secure and prepared for any cyber threat.

Smart buildings need smarter defense strategies. Take the time to evaluate your systems, close security gaps, and align your insurance coverage to reflect today’s interconnected world. The payoff is peace of mind, knowing both your real estate investment and your tenants are protected.