Every commercial building generates a steady stream of data from its access controls, lighting, energy systems, security cameras, and other building technology. Most owners assume that data belongs to them. According to a privacy attorney who specializes in commercial real estate, most of the time it does not.
The attorney made the point on the Peak Property Performance podcast, hosted by Bill Douglas, CEO of OpticWise. His message to anyone who operates commercial real estate was direct: read your vendor agreements, because you may be giving away more than you think.
What Many Vendor Contracts Actually Say
According to the attorney, many standard technology contracts give the vendor an unlimited license, in perpetuity, to use the data a property generates. In some cases the vendor owns the data outright and has the right to sell it back to the owner. Even after an owner ends the relationship, the vendor may not be obligated to delete the data and can keep it.
That changed how Bill talks about the issue. “I used to say you owned it,” he said. “But this gentleman said, most of the time you don’t, that instead you may simply have a right to use your own data.”
The distinction matters. Having the right to use data is not the same as owning it. An owner with only usage rights may not be able to take the data to a new vendor, combine it with data from other systems, or hand it to a buyer or lender who asks for operating history.
Paying to Get Your Own Data Back
The attorney was not the only podcast guest to raise the problem. An asset manager at a private equity firm described her situation in one sentence: “I pay for my own data to get my own data back, and then I can’t even get it in a format that I want.”
Bill called it “the single strongest validation I’ve ever heard.”
He has seen the same pattern with OpticWise’s own clients. Some have asked a large vendor for their data and received, two weeks later, a poorly formatted file that was already two weeks out of date. “They’re paying this Fortune 100 company for systems and for software,” Bill said, “and they don’t really get to see the core data unless they ask for it.”
For owners, this is a financial issue as much as a technical one. Operating data shows how a building is performing and what is driving its expenses. Without access to it, owners have a harder time controlling costs, planning capital projects, and answering questions during a sale or refinance.
What Owners Can Negotiate
The good news, according to the attorney, is that these terms can usually be changed. Vendors often start from the position that everything they collect belongs to them. When owners push back, it becomes a negotiation, and vendors will often agree to surrender the data ownership rights.
Owners do not need to stop vendors from using data to deliver the service they are paying for. The key terms to ask for are:
- A source copy of all data the systems generate, delivered to the owner’s own data storage
- A clear limit that the vendor cannot use or sell the data outside the service being provided
- Clear terms for what happens to the data when the contract ends
Bill takes a firm view. “It’s my data,” he said. “The systems that I own in that building are generating that data. It is mine. Regardless of what that contract says, you can change it tomorrow. And you should.”
Messy Data Is Still Worth Getting
Some owners hesitate because the data they receive is hard to work with. Older systems often produce bulky files with inconsistent fields. Bill’s advice is not to let that stop you.
“Just get your data,” he said. “It might be ugly, but just get it. And then if it’s unusable, go back to the vendor and say, we have to fix this or I’ll switch vendors.”
He added that owners do not need to hire a data scientist to get started. With six to 12 months of history, machine learning tools can find useful patterns even in data that is not neatly organized.
The larger point is about who is in charge. “You’re writing the check. Be the customer,” Bill said. “Drive your bus. Don’t be a passenger on your own bus.”
Listeners can hear more from the attorney, the asset manager, and other guests on the Peak Property Performance podcast.
OpticWise is a commercial real estate digital infrastructure and data strategy firm that helps owners and operators take control of their property data and technology. CEO Bill Douglas is co-author of the best-selling book Peak Property Performance®: Game-Changing AI and Digital Strategies for Commercial Real Estate (Fast Company Press) and host of the Peak Property Performance podcast.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
Media Contact Information
Heather Hook
KeyCrew Media
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.
