Commercial real estate due diligence routinely covers roofs, mechanical systems, environmental conditions, and leases. Building technology often gets a line item at best. That’s a mistake on both sides of the deal.
For a buyer, technology problems surface after closing as unbudgeted capital projects, tenant complaints, and life-safety compliance issues. For a seller, undocumented infrastructure and missing agreements raise questions that slow the deal and give buyers leverage. A focused technology review answers those questions early.
This guide covers what we look at and why it matters.
Why technology belongs in due diligence
Building technology affects value in ways that aren’t always obvious:
- Leasing. Tenants expect reliable connectivity from multiple providers. Limited carrier options or congested risers can affect marketability.
- Operations. Access control, video surveillance, and building systems that are aging, proprietary, or undocumented raise operating costs.
- Life safety. Emergency responder communications requirements can affect certificates of occupancy and inspections.
- Capital planning. End-of-life systems become post-closing capital projects.
- Risk. Unknown equipment, unsigned agreements, and uncontrolled access create liability.
Risers and telecom infrastructure
Start with the physical pathways, because everything else depends on them.
What to review
- Main point of entry (MPOE) and the number and diversity of building entrance pathways
- Riser capacity, including available sleeves, conduit, and space
- Condition and organization of telecom rooms on each floor
- Presence of abandoned cable and unidentified equipment
- Labeling quality and whether cable can be traced to an owner
- Firestopping at riser penetrations
- Power and cooling in telecom rooms
- Physical security of riser spaces and who has access
Questions to ask
- Is there a current riser diagram, and does it match what’s in the field?
- Who manages the risers today: building staff, a vendor, or no one?
- Is there a change control process for work in telecom spaces?
- How much usable pathway capacity remains for new carriers and tenants?
Carrier and provider agreements
Every carrier with equipment in the building should be there under a signed agreement. In practice, that’s not always the case.
- Inventory of every carrier and provider with equipment or cable on site
- Copies of license, access, or rooftop agreements for each
- Terms covering space, power, access, insurance, and removal obligations
- Revenue-generating agreements and their remaining terms
- Any exclusivity provisions that limit tenant choice
- Equipment present without an agreement
- Assignability of agreements to a new owner
For buyers, missing agreements are a negotiating point and a post-closing task. For sellers, assembling them in advance avoids delays.
Emergency responder communications (ERRCS)
Many jurisdictions require buildings to provide adequate radio coverage for first responders, based on the fire code adopted locally. Where coverage isn’t adequate, an emergency responder radio coverage system (ERRCS), often using a bidirectional amplifier (BDA) and distributed antenna system (DAS), may be required.
Requirements, testing, and permitting vary by jurisdiction and are enforced by the authority having jurisdiction (AHJ). Due diligence should establish the facts:
- Has a radio coverage assessment been performed, and what were the results?
- Is an ERRCS installed? If so, when, and by whom?
- Are permits, acceptance test results, and inspection records available?
- Is there a current maintenance and annual testing record?
- Is the system monitored, and does it have required backup power?
- Are there open deficiencies or correspondence with the AHJ?
- Are planned renovations likely to trigger new coverage testing?
An installed system with no testing history, or a building with no coverage assessment at all, is a finding worth pricing into the deal.
Access control and video surveillance
Security systems carry both operating and capital implications.
Access control
- Manufacturer, software version, and support status
- Whether the system is proprietary to one integrator or openly supportable
- Who administers it and where the server or cloud account lives
- Credential types in use and whether they’re current technology
- Integration with elevators, parking, visitor management, and tenant systems
- Transferability of software licenses and admin access at closing
Video surveillance (CCTV)
- Camera count, coverage, and condition
- Recording platform, retention, and storage capacity
- End-of-life cameras or recorders
- Remote access and how it’s secured
- Ownership of the platform and accounts
Proprietary systems tied to a single vendor, or accounts held by a former property manager, can turn into expensive surprises.
Building network and connected systems
Modern buildings run more on IP networks than most owners realize.
- Inventory of building systems on a network: building automation, access control, CCTV, elevators, lighting, metering
- Whether these systems share a network or are segmented
- Who manages the building network and firewall
- Remote access paths used by vendors
- Default or shared passwords on building systems
- Building Wi-Fi and amenity space connectivity
Poorly secured building systems are a cyber risk to the owner and, in some cases, to tenants.
Other communications systems
- Elevator emergency phones and their phone line or communication path
- Fire alarm communicators and how they reach the monitoring service
- Copper phone lines still in use and plans to migrate them
- Two-way communication systems in areas of refuge, where required
Legacy copper lines serving life-safety functions deserve attention as carriers retire older services.
Documentation
What’s documented transfers cleanly. What isn’t becomes the new owner’s problem to rediscover.
- As-built drawings for telecom and low-voltage systems
- Riser diagrams and room inventories
- System manuals, licenses, and support contracts
- Admin credentials and account ownership for every system
- Vendor contact list with contract terms
- Inspection and test records for life-safety systems
Deferred technology capex
Pull the findings together into a capital view. For each system, note:
- Current condition and support status
- Expected remaining life
- Known compliance gaps that require action
- Recommended actions, grouped into immediate, near-term, and longer-term
- Budget ranges from qualified vendors for significant items
This gives the buyer a basis for underwriting and negotiation, and gives the seller a chance to address issues or price them in before they become objections.
For sellers: prepare before you list
Sellers benefit from running this review before marketing a property:
- Assemble carrier agreements and fill gaps
- Clean up abandoned cable and label risers
- Gather ERRCS and life-safety testing records
- Confirm admin access and license transferability for security systems
- Document what’s there so the buyer’s review goes faster
How we can help
We perform building technology due diligence for owners, buyers, and sellers of commercial property, covering risers, carriers, life-safety communications, and security systems. We’ll document what’s there, flag what needs attention, and give you a clear capital view to support the deal.