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article-poster
13 Jul 2025
Thought leadership
Read time: 3 Min
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The Hidden Security Risk in Commercial Real Estate

By Mark Austin & Leon Loutsovasilis.

$42 billion. That's what cyber attacks cost Australian businesses in 2023. For property developers and financiers still clinging to outdated on-premise systems, the risk is multiplying.

Australia's commercial property market is set for recovery in 2025. The winners will be those who transform digitally without compromising security.

With billions in Australian commercial property transactions at stake, digital transformation has never been more critical.

The losers? Those who believe their server rooms are safer than the cloud.

Your Server Room Is Your Biggest Risk

Data breaches average $4.26 million per incident. For CRE firms handling billion-dollar transactions, one breach could be catastrophic.

The Australian Cyber Security Centre reports cyber incidents occur every few minutes across Australian businesses.

Yet we regularly see organisations with:

  • Outdated hardware running critical systems

  • Months-old security patches

  • Disaster recovery measured in days, not minutes

All while believing they're "more secure" than cloud alternatives.

Cloud = Competitive Advantage

Modern cloud providers deliver what your IT team can't:

  • Geographic redundancy: Automatic failover in minutes, not days

  • 24/7 monitoring: Threats detected and neutralised instantly

  • Single source of truth: No more data duplications or manual errors

  • Regulatory compliance: Built-in GDPR, Privacy Act compliance

In CRE financing, timing is everything. Cloud systems keep you operational when competitors go dark.

Australian financial institutions increasingly adopt cloud services, recognising superior security and resilience over on-premise alternatives.

Regulation: $50M Penalty or Competitive Edge?

Australia's Privacy Act reforms bring penalties up to $50 million for data breaches. Data breaches continue to rise across Australian businesses.

Smart operators partner with compliance specialists who handle:

  • Right to be forgotten requests

  • Cross-border data transfers

  • Mandatory breach notifications

Transform regulatory burden into competitive advantage.

Strategic Partnerships = Market Domination

Australia's proptech sector has attracted significant investment, with financing platforms leading growth.

Lendhaus captures both adviser-led deals AND the 80% of transactions that bypass advisers entirely.

How? Strategic partnerships that create integrated ecosystems, not just referral networks.

The result: broader market penetration impossible to achieve alone.

The Bottom Line

Privacy is important. Paralysis is expensive.

Smart CRE operators focus on what truly needs protection while leveraging cloud solutions for everything else.

At Lendhaus, our guiding principle is simple: "In commercial real estate, financing is a big deal. Investing, lending and borrowing shouldn't be."

Transform financing from complex obstacle to competitive advantage. The cloud isn't just safer—it's where the winners will be.

Your competitors are already moving. The question isn't whether to transform digitally.

It's whether you'll lead or follow.

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