Managed vs. Unmanaged Network Devices: Why It Matters for Commercial Real Estate Companies

Commercial real estate companies are no strangers to complexity; juggling properties, tenants, vendors, and data across multiple locations is just part of the job. But as technology becomes more deeply woven into daily operations, from smart building systems to remote management tools, the devices powering these systems are playing a bigger role than ever. One decision that often flies under the radar (but carries serious consequences) is whether network devices are managed or unmanaged.

The choice between managed and unmanaged network device scan significantly impact a CRE company’s security posture, operational efficiency, ability to scale, and overall supportability. Let’s explore what these terms mean, why the distinction matters, and how CRE firms can make the right choice for their business.

What’s the Difference?

Managed Devices

Managed Network Devices are configured, monitored, and maintained either by an internal IT team or a third-party provider. These devices are typically part of a centralized network management system, allowing for remote access, firmware updates, performance monitoring, and security policy enforcement.

Unmanaged Devices

Unmanaged Network Devices are typically plug-and-play. They operate with default settings and minimal configuration, offering little to no visibility or control once deployed. While they may be cheaper upfront, they come with significant trade-offs in terms of supportability, security, and flexibility.

Why This Matters for CRE Companies

1. Security and Risk Mitigation

CRE companies are increasingly responsible for protecting not just their own data, but also that of tenants, vendors, and building systems. Unmanaged devices are often left with outdated firmware and no monitoring, making them easy targets for cyberattacks.

Managed devices, on the other hand, can be configured with strong access controls, regularly updated to patch vulnerabilities, and remotely monitored for unusual activity. This is especially important in multi-tenant environments where a breach in one part of the network could affect multiple stakeholders.

2. Smart Building Integration

Modern buildings rely on a growing ecosystem of connected systems—HVAC, lighting, access control, energy management, and more. These systems often communicate over the same network infrastructure. Managed switches and firewalls allow for segmentation, traffic prioritization, and quality of service (QoS), ensuring that critical building systems remain reliable and secure.

Unmanaged devices can’t provide this level of control, increasing the risk of network congestion, downtime, or even having all systems being compromised due to the vulnerability of an individual system.

3. Remote Management and Troubleshooting

CRE portfolios often span multiple locations, sometimes across cities or even states. When a network issue arises at a property, having managed firewall and switches in place means IT teams can log in remotely, diagnose the problem, and often resolve it without dispatching a technician.

Managed devices allow for patch management, configuration changes, and troubleshooting issues remotely. In contrast to unmanaged devices, where troubleshooting typically requires someone to be physically on-site, which delays resolution and increases operational costs.

4. Scalability and Standardization

As CRE companies grow and add new properties, tenants, or services, network infrastructure needs to scale with them. Managed devices support centralized configuration templates, automated provisioning, and consistent policy enforcement across sites.

Unmanaged network devices, by contrast, are difficult to scale. Each one must be configured manually (if at all), and there’s no easy way to ensure consistency across a growing portfolio.

5. Compliance and Liability

Data privacy regulations and cybersecurity standards are becoming more stringent across industries. CRE companies that handle tenant data, building access logs, or financial transactions may be subject to compliance requirements like SOC 2, ISO 27001, SEC Breach Reporting, GDPR,CCPA, PIPEDA, or local data protection laws.

Managed network infrastructure provides the audit trails, access controls, and reporting capabilities needed to demonstrate compliance. Unmanaged devices offer none of this, and could expose the company to legal and financial risk in the event of a breach.

Real-World Scenario: The Hidden Cost of Unmanaged Infrastructure

Imagine a CRE firm managing a portfolio of mid-sized office buildings. To save on costs, they deploy unmanaged switches and consumer-grade routers at each site. Over time, the building's facilities operation degrades, including the loss of HVAC and access control, which can be frustrating for clients. One day, a cyberattack exploits a vulnerability in an outdated router. Perhaps a tenant connected to this old router because “the internet was free,” leaving their PC vulnerable. A bad actor is then able to use this vulnerability to gain access to the building’s access control system. The breach leads to a temporary lockdown, tenant frustration, and a PR nightmare.

Had the company invested in managed infrastructure, the router would have been flagged and patched, and the network segmented to prevent lateral movement. The cost of prevention would have been far less than the cost of recovery.

Making the Shift to Managed Infrastructure

Transitioning to managed network devices doesn’t have to be over whelming. Here’s how 5Q can help you get started:

1. Audit Your Current Network
       Identify all switches, firewalls, routers, and access points across your properties. Document their configurations, firmware versions, and management status.
2. Prioritize Critical Sites
       Start with high-traffic, high-risk, marquee properties, such as those with smart building systems or sensitive tenant data.
3. Partner with a Trusted MSP or IT Provider
       If you don’t have in-house expertise, consider working with a managed security service provider (MSSP) who specializes in CRE environments. Ensure your provider monitors both IT and OT networks.
4. Implement Centralized Management Tools
       Use platforms that allow for remote monitoring, configuration, and alerting across all sites.
5. Establish Network Policies
       Define standards for device configuration, firmware updates, access control, and incident response.

Managed network devices offer the visibility, control, and security that CRE companies need to operate efficiently and protect their investments. While unmanaged devices may seem like a cost-saving shortcut, they often lead to greater risks and higher costs down the line.

By investing in managed infrastructure today, CRE firms can future-proof their properties, enhance tenant satisfaction, and stay ahead of the curve in an increasingly connected world.

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