Commercial real estate in Ireland has evolved rapidly in recent
years due to the integration of sophisticated technology into
various types of property assets. Smart buildings create dynamic,
efficient and sustainable environments for their occupants but
smart buildings also come with risks. Here we discuss the potential
risks which can be managed using contractual safeguards.
1. Incident Management
The dependence of smart buildings on internet connectivity
presents vulnerabilities to cyber-attack. Tenants need to have
contingency measures in place which can be implemented in the event
of a cyber-attack and, crucially, tenants need to understand
whether the landlord or tenant will be liable for the costs of
dealing with such an event. Where critical functionalities of a
building fail, tenants may want the ability to trigger a rent
suspension mechanism in their lease until the issue is
remedied.
