Ep. 52 From Privacy Risk to Owner Control: What CRE Owners Need to Know About Building Data

In this episode of Peak Property Performance, Bill Douglas and Drew Hall speak with Derek Neathery, Partner at Quarles & Brady LLP, about a growing risk in commercial real estate: who actually controls the data generated by a building. They explore vendor agreements, data privacy, digital infrastructure, and what owners should understand before signing away rights that may affect operations and asset value.Building data ownership and privacyCRE vendor agreementsProperty management technologyData collection and retentionVendor-controlled infrastructureTelecom and connectivity agreementsDigital due diligenceProtecting long-term asset valueDerek: Everything automated within a building produces data. Software providers, property managers, and consultants may all touch it, and their contracts can grant broad rights to store, aggregate, use, or even monetize that information.Derek: An owner may technically own building data while a vendor's contract gives that vendor broad rights to use it. Owners need to understand what is collected, who can access it, how it can be used, and whether those rights continue indefinitely.Electronic locks and other connected systems improve operations but also generate information about how people use a property. The contract determines where that data goes, who can use it, and who carries responsibility if it is compromised.Telecom providers may offer to wire a property at no upfront cost, but agreements can last ten years, restrict competing providers, and give the vendor significant control over infrastructure inside the building. Those restrictions can even become an issue during a future sale.Derek: Network planning should happen alongside the physical design of a property—not after construction decisions have already been made. When owners know what they want upfront, legal counsel can negotiate contracts around a clear business strategy.Bill: Owners should ask every vendor what happens if the relationship ends. Do you keep the sensors, handsets, network, wiring, and data? And if you own the data, what rights does the vendor retain?Digital infrastructure and data rights are often overlooked during property acquisitions. Derek expects this to change as the industry develops standards, much like environmental diligence eventually became routine in real estate transactions.Owners should understand: What data is collected? Who owns it? Who can use it? How is it secured? Who is responsible after a breach? And what happens to the data when the relationship ends?Best career advice? You get the clients you deserve—your behavior influences the people you attract.Habit that makes you effective? Do one thing at a time and finish it before moving on.Early bird or night owl? Early bird.Derek NetheryPartner, Quarles & Brady LLPWebsite: https://www.quarles.com/   Email: derek.nethery@quarles.com LinkedIn: https://www.linkedin.com/in/derek-neathery-15007a14/ The Peak Property Performance Podcast is hosted by Bill Douglas and Drew Hall of OpticWise. The show explores how commercial real estate owners and operators improve performance through data & digital infrastructure, operational intelligence, AI, and better decision-making.Learn more:https://www.peakpropertyperformance.comhttps://www.opticwise.comWatch this episode on YouTube:https://www.youtube.com/@PeakPropertyPerformanceReplace transcript headings with key takeawaysAdd a concise owner action checklistKey Topics CoveredEpisode TranscriptYour Building Generates More Data Than You ThinkOwning Data Doesn't Mean You Control ItThe Hidden Risk in Smart Building Technology“Free” Infrastructure Can Carry a Long-Term CostPlan Digital Infrastructure EarlyAsk: “If I Replace You, What Do I Keep?”Make Data Part of Due DiligenceQuestions to Ask Before SigningExtra Floor — Rapid Fire with Derek NetheryContact the GuestAbout Peak Property Performance