Nobody Owns the Operating Technology Layer in Commercial Real Estate. That's Getting Expensive.

Written by:

Heather Hook

Date:

12 Aug 2026

KeyCrew Studio

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Asset managers answer for NOI, CapEx returns, refinancing packages, and exit prices. IT managers handle networks and security. Property managers handle tenants. The operating technology connecting all three belongs to no one, and according to Bill Douglas, CEO of OpticWise and co-author of Peak Property Performance®, that structural gap is becoming increasingly costly as rents flatten and expenses rise.

A Triangle With a Hole in the Middle

Douglas describes the accountability structure in most commercial real estate organizations as a triangle: the asset manager, the IT manager, and the property manager each occupy a corner. At the center sits what he calls OT – operating technology – and in most portfolios, nobody owns it.

“We’re asking asset managers to be accountable for outcomes while giving them access only to the reports,” Douglas says.

IT managers, meanwhile, deal with systems that have little to do with building operating data. Property managers and building engineers on-site focus on tenant issues and day-to-day operations. They are not positioned to monitor data streams from building systems, identify anomalies across operating platforms, or connect that information to portfolio-level financial performance.

Douglas argues this is a structural problem, not a personnel failure. The operating technology layer – the systems, networks, devices, sensors, and controls that run a building and generate continuous performance data – has historically been categorized as an IT expense. That classification, he says, obscures its actual function: generating data that directly affects asset value and income.

What Gets Left on the Table

The consequences show up across multiple dimensions of asset management. Douglas points to insurance renewals as one underappreciated example. Most owners submit standard documentation when renewing commercial property insurance. Very few submit documented maintenance histories, uptime records, alarm histories, environmental monitoring data, and cybersecurity controls alongside their financials.

Douglas says that when an owner can hand an underwriter evidence of lower risk – rather than asking the underwriter to trust them – premiums can come down, typically in the range of 3–10% off the renewal quote, and in some cases roughly 5% off the current premium.

“Instead of saying, trust us, you’re saying, here’s the evidence, your risk is lower,” Douglas says. “We can’t promise this – we’re not insurance brokers. But the pattern has held every time a client has presented from a data position.”

The same principle applies to refinancing. Lenders want confidence that an asset performs the way its financials claim. When an asset manager can trace operating data back to financial results, Douglas argues, the credibility of the entire package improves.

“Better operating data doesn’t replace financials,” Douglas says. “It strengthens credibility behind those financials.”

Capital expenditure planning also changes when operating data is available. Douglas uses the example of two chillers of the same age. Financial reports show both are 15 years old. Operating data reveals one has been running 20% harder for three years because its controls aren’t optimized. That distinction – age versus condition – determines whether a replacement happens on schedule, gets deferred, or gets moved up and managed without a tenant disruption.

The Resistance Douglas Keeps Running Into

Douglas is candid about the pushback he encounters. He describes conversations with owners who say they just rent space, that they’re not a technology firm, that they’re comfortable with current returns, or that they plan to sell in five years and don’t want to invest in infrastructure they won’t benefit from.

That last objection is the one he finds most difficult to understand. “I’m thinking it’s five years of NOI, and that NOI is compounded when you sell the building,” Douglas says. “Not only do you lose the income, but you also lose the asset increase.”

He also raises a vendor dependency issue many owners haven’t considered. Most commercial portfolios run multiple PropTech platforms whose data is typically owned by the vendor, not the property owner. When a vendor relationship ends, the data may leave with it.

“You’re spending money on PropTech,” Douglas says. “Why don’t you own and control the data that it’s generating?”

The Case for a New Operating Discipline

Douglas’s argument is that addressing the OT gap requires establishing a new function within real estate organizations, one that owns the owner’s data and digital infrastructure across the portfolio. This is distinct from IT, distinct from asset management, and distinct from property management.

“It is becoming a new operating discipline, something that needs to be done to maximize, and it pays for itself,” Douglas says.

OpticWise positions itself as a resource for owners beginning to map this territory. According to Douglas, the company offers a digital and data domain assessment framework – covering six domains and 67 elements – at no cost, available through their published book: Peak Property Performance®, intended to help asset managers identify their biggest blind spots before committing to any platform.

Douglas recommends a 90-day starting point built on the Clarify stage of the PPP 5C™ framework, anchored by three questions: Where does the data originate? Who owns it? And can it be reused not just within a single property but across the portfolio?

“You probably won’t have a transformed portfolio in 90 days,” Douglas says, “but you’ll know where your biggest blind spots are.”

About OpticWise

OpticWise is the data and digital infrastructure partner for commercial real estate, founded in 2004. The company helps owners and operators turn fragmented, vendor-controlled building technology into governed, owner-controlled data and digital infrastructure that compounds value across a portfolio. Learn more at opticwise.com. Bill Douglas is co-author of Peak Property Performance®: Game-Changing AI and Digital Strategies for Commercial Real Estate (Fast Company Press). Learn more at peakpropertyperformance.com.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.