Tech in Practice: Solution Demonstrations for CRE IT and OT Teams

IT-OT Convergence Risks

Commercial real estate operators are accelerating the deployment of Internet of Things devices and smart building systems to optimize energy use, enhance tenant experiences, and reduce operational costs. Projections show IoT devices in commercial buildings more than doubling to over 4 billion by 2030, driven by AI integration that enables predictive analytics and significant reductions in HVAC energy consumption.

This shift has brought IT and OT convergence to the forefront. Operational technology—systems controlling HVAC, lighting, access controls, and elevators—now connects to IT networks for real-time data and remote management. What was once isolated is now interconnected, creating efficiencies but also vulnerabilities that legacy designs never anticipated.

Cybersecurity threats have surged as a result. Building automation systems, once overlooked, now rank among top targets alongside traditional IT networks. Incidents range from device compromises to major disruptions, with over 80% of organizations reporting IoT-related cyber events. High-profile vulnerabilities in legacy protocols like LonTalk persist in many deployments, amplifying risks in sectors such as offices, retail, and hospitality.

The stakes are concrete. A successful breach can lock access controls, disable elevators, or manipulate environmental systems, leading to tenant safety issues, evacuation orders, regulatory penalties, and prolonged downtime costing millions in lost revenue. Insurance markets have tightened for cyber-exposed properties, and tenant retention suffers when trust erodes. Facilities teams now share accountability for cyber risk with IT departments, shifting from reactive measures to proactive strategies like zero-trust architectures and continuous monitoring.

Non-obvious tensions arise in implementation. Retrofitting legacy systems proves costly and disruptive, often requiring shutdowns. Cultural divides between OT engineers focused on uptime and IT professionals prioritizing security slow progress. While AI promises transformative efficiencies, data silos and interoperability issues leave much sensor-generated information unexploited. Organizations must weigh the competitive advantages of rapid adoption against the real-world consequences of inadequate safeguards in an era where physical and digital threats converge.