Is Technical Debt Costing Your Building More Than You Think?

Technical debt in commercial real estate (CRE) is increasingly recognised as a critical barrier to innovation and operational efficiency. As highlighted by JLL Technologies, the industry is under pressure to modernise. However, many organisations still rely on outdated systems and fragmented data, which hinders their ability to make agile, data-driven decisions.¹

Deloitte expands on this by explaining that technical debt, accumulated from legacy systems, rushed implementations, and deferred upgrades, can significantly inflate costs and delay digital transformation efforts. The burden often falls on property owners, operators, and tenants, who must navigate the consequences of inefficient technology stacks, including higher maintenance costs and reduced adaptability.²

Addressing this debt requires strategic investment in scalable, integrated technologies and a shift in mindset toward long-term digital resilience. Together, these insights underscore the urgency for CRE stakeholders to confront technical debt head-on to remain competitive in a rapidly evolving landscape. In the remainder of this article, we will explain what technical debt is, why it happens and how it can be resolved.

What Is Technical Debt in Commercial Property?

Technical debt happens when short-term fixes are chosen over long-term IT solutions. It’s often caused by budget cuts, lack of expertise, or just putting things off. Over time, these decisions accumulate and create bigger problems.

In buildings, this might look like outdated building management systems (BMS), unsupported software, or systems that don’t talk to each other. Debt can also mean skipped maintenance or relying on manual workarounds. These issues might seem small at first, but they can quickly escalate.

Why It Matters to Building Owners, Operators and Tenants

Technical debt affects everyone in the building. For owners, it can lower the building’s value and make it harder to sell or lease. Buyers and tenants see it as a future cost they’ll have to deal with.

Building operators will face rising maintenance costs and more complaints, and they might end up spending more time fixing problems than improving services. Tenants can find they’re stuck with slow internet, poor security, and systems that don’t work properly. In science parks, this can even put sensitive research at risk.

Real-World Examples of Technical Debt

The cases of Nokia and Southwest Airlines serve as powerful warnings for property owners and operators about the risks of unchecked technical debt. Nokia’s inability to modernise its outdated operating system in time for the smartphone revolution led to a dramatic market collapse and a $7.6 billion write-off. Similarly, Southwest Airlines suffered nearly $1 billion in losses when its antiquated crew scheduling system failed during peak travel, grounding thousands of flights. These examples highlight how legacy systems can cripple operations and competitiveness—an urgent lesson for real estate leaders managing ageing building technologies, siloed data systems, or underinvested digital infrastructure.³

An outdated Building Management System (BMS) that does not integrate with other systems can lead to energy waste and make temperature control difficult. While legacy access controls may still function, they can be insecure and costly to maintain. When systems do not share data, staff often have to perform tasks manually or repeat them, resulting in duplicated efforts, wasted time, and a higher likelihood of errors. Additionally, neglecting regular maintenance, such as HVAC checks, can cause breakdowns and increase energy bills.

Why It Happens

There are a few common reasons for the acculturation of technical debt. Budget constraints often force owners to delay upgrades. Some teams don’t have the right expertise to plan or manage IT properly. Others focus too much on short-term savings and avoid change, even when it’s needed.

How to Fix Things in Commercial Buildings

Start by conducting a thorough audit of your building’s technology infrastructure. This includes everything from building management systems (BMS) and HVAC controls to lighting, access control, and energy monitoring platforms. Identify which systems are outdated, unsupported, or overly reliant on manual processes. These are often the hidden sources of technical debt, costing more to maintain, limiting flexibility, and increasing risk. A clear inventory is the first step toward regaining control.

Start by Finding the Problems

Take a close look at where short-term fixes have been applied, perhaps a patch to a legacy system or a workaround to integrate incompatible platforms. These quick fixes often accumulate into long-term liabilities. Create a list of these issues and rank them by impact: which ones affect operational efficiency, tenant comfort, energy performance, or cybersecurity? Focus first on the systems that pose the greatest risk or cost. A simple spreadsheet or task board, such as Microsoft Excel or Planner, can help you organise and prioritise this list effectively.

Make Fixing Things Part of Your Routine

Technical debt isn’t a one-time issue. It built up over time. That’s why it’s important to embed regular review and remediation into your operational routines. Use team meetings to check in on progress, flag new issues, and assign responsibilities. Even dedicating a small portion of your monthly maintenance schedule to addressing technical debt can lead to significant long-term improvements. Documenting this process in a shared location, such as a Microsoft OneNote notebook or SharePoint site, ensures visibility and accountability across the team.

Train Your Team

Your team is your first line of defence against technical debt. Make sure everyone from facilities managers to IT support understands what technical debt is, how it accumulates, and why it matters. Provide training on best practices for system updates, documentation, and vendor management. Encourage open communication about what’s working and what’s not. When staff are empowered to identify and address issues early, they reduce the risk of small problems becoming major failures.

Keep Things Clear and Up to Date

Good documentation is essential for managing complex building systems. Without it, knowledge is lost when staff leave, or vendors change. Standardise how you record system configurations, maintenance procedures, and update logs. Use consistent formats and store them in a central, accessible location such as SharePoint. This will help with troubleshooting and support smoother upgrades and transitions in the future.

Small Improvements

Rather than waiting for a major capital project to overhaul outdated systems, look for opportunities to make incremental improvements. Updating firmware, replacing outdated sensors, or integrating a new analytics tool can all deliver value without major disruption. These small changes are easier to manage, less risky, and can often be implemented within existing budgets. Over time, they add up to a more modern, resilient building infrastructure.

Make Security a Priority

Legacy systems often come with security vulnerabilities, especially if they’re no longer supported by the manufacturer. Make cybersecurity a core part of your technical debt strategy. Ensure systems are regularly patched, access controls are reviewed, and network segmentation is in place. Where possible, automate security checks and alerts to catch issues early. This is particularly important for systems connected to the internet or integrated with tenant services.

Watch Your Tools and Systems

Many building systems rely on third-party software, cloud platforms, or proprietary hardware. Keep track of these dependencies and monitor their lifecycle. Are vendors still supporting the tools you use? Are updates being applied regularly? Use asset management tools or even a simple shared tracker to stay on top of this. Isolating critical systems, such as fire safety or access control, can also make them easier to protect and maintain.

A Culture of Continuous Improvement

Finally, foster a culture where continuous improvement is part of the job. Celebrate small wins, like retiring an outdated system or improving energy efficiency through better controls. Encourage staff to share lessons learned and suggest improvements. When people feel they have ownership over their systems and pride in their work, they’re more likely to build and maintain infrastructure that stands the test of time.

How Modern Networks Can Help

Modern Networks offers managed IT services for commercial buildings, including offices, shopping centres, and science parks. Our team can assess your systems, identify issues, and create a proposal to resolve any problems. We will also help you plan for future needs.

We offer super-fast broadband, secure networks, cloud phone systems, and 24/7 support. We can also help with cybersecurity and regulatory compliance. With Modern Networks, you get a partner who understands the unique challenges of commercial property.

If your building is carrying technical debt, now’s the time to deal with it. Talk to Modern Networks about our managed IT services and how we can help you protect your building’s value, performance, and tenant satisfaction. Contact us today.

References:

“61 per cent of global real estate owners and investors are still dependent on legacy technology infrastructures.”