Industry NewsJuly 3, 202611 min read

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Managed Services Market Growth: What It Means for Commercial Property IT

Quick Answers for Property & Facility Managers

How does the $847.4B managed services market forecast affect commercial property and facility managers?

The projection that the managed services market will reach $847.4 billion by 2033 signals faster adoption of cloud, cybersecurity, and AI-driven IT operations. For commercial property and facility managers, it means more mature MSP offerings, stronger security and compliance capabilities, and greater access to outsourced building IT expertise.

Why are managed IT and cybersecurity services becoming critical for building owners and property managers?

Managed IT and cybersecurity services are critical because building systems now rely on cloud platforms, internet-connected OT, and tenant data. Escalating cyber threats, stricter regulations, and complex standards such as NIST CSF, SOC 2, and the FTC Safeguards Rule make specialized MSP support essential to protect assets, tenants, and business continuity.

What should facility managers look for when choosing a managed IT provider for their properties?

Facility managers should prioritize MSPs with 24/7 support, defined SLAs, strong cybersecurity (EDR/MDR, SOC, MFA), compliance expertise (NIST, SOC 2, FTC Safeguards), experience with building systems and OT networks, and clear backup and disaster recovery plans aligned to the scale and criticality of their facilities.

Managed services market expansion: why commercial properties should care

A recent forecast projects the global managed services market will grow to $847.4 billion by 2033, driven by rapid cloud transformation, escalating cybersecurity requirements, and increased adoption of AI-driven IT operations. This trajectory aligns with other industry analyses that place the global MSP market in the high hundreds of billions with double‑digit annual growth, reflecting the central role of outsourced IT in modern enterprises.[6][7]

For commercial property managers, facility managers, and building owners, this is not abstract market news. It is a direct signal that building technology stacks—access control, building automation, energy systems, Wi‑Fi, tenant portals, and remote monitoring—are converging with enterprise IT. As these systems move to the cloud and become internet‑connected, the risks and responsibilities increase sharply. Managed service providers (MSPs) are becoming strategic partners, not just help desk vendors, for long‑term digital infrastructure, cybersecurity, and compliance across portfolios.

In practical terms, this market growth means more specialized service offerings, deeper cybersecurity capabilities, and greater pressure on owners to modernize their IT operating model. It is increasingly difficult to manage building IT with part‑time internal resources or ad‑hoc contractors.

Cloud‑driven building operations: implications for property and facility managers

Cloud transformation is one of the primary drivers behind managed services growth.[4][5] Building systems that were once standalone—such as HVAC controls, elevator dispatch, video surveillance, parking, and visitor management—are now delivered as SaaS platforms and connected across sites.

For property and facility managers, this shift creates several strategic issues:

Complex multi‑vendor environments: Access control, BMS, CMMS, and tenant engagement platforms each have their own cloud management consoles, security models, and update cycles. An MSP can centralize monitoring, configuration, and policy enforcement.
Network and Wi‑Fi reliability: Cloud systems depend on robust LAN/WAN and secure guest/tenant Wi‑Fi. Managed network services help design, monitor, and support these networks to avoid outages that disrupt building operations.
Scalability across portfolios: When a portfolio spans multiple cities, standardized cloud configurations and identity management become essential. MSPs provide templates, governance, and automation to keep environments consistent and auditable.
Integration with corporate IT: Many buildings are managed by organizations that also run corporate offices. MSPs can align building technology with enterprise standards for identity, endpoint management, and data protection.

Cloud complexity is already cited in U.S. managed services growth forecasts, where rising cloud demand is a key factor behind market expansion.[1][5] For building owners, that translates into a clear need for structured, professional managed IT support rather than one‑off projects.

Escalating cybersecurity risk across building and OT systems

Cybersecurity requirements are another major driver of the global managed services market.[4][7] Buildings increasingly host operational technology (OT) such as industrial controls, IoT sensors, smart lighting, and metering systems. These assets are often connected to corporate networks or the internet, making them attractive targets.

For property and facility managers, the risk profile now includes:

Compromised building automation: Attacks on BMS or access control can disrupt operations, impact life safety systems, or lock out staff and tenants.
Data breaches: Tenant data, video surveillance footage, visitor logs, and parking records can contain personally identifiable information (PII) subject to regulations and contractual obligations.
Ransomware and business interruption: If servers or cloud gateways that coordinate building systems are encrypted, core services like heating, cooling, or elevators can be impacted, creating operational and reputational damage.

Managed cybersecurity services—EDR/MDR, SOC monitoring, email security, MFA enforcement, and vulnerability management—are central to how enterprises respond to these risks. The growth of managed security offerings is tightly intertwined with overall managed services expansion.[6][7]

Building owners should specifically ask MSPs about:

OT‑aware security: Ability to segment building networks, monitor traffic between IT and OT, and work with manufacturers’ guidelines to preserve warranties.
24/7 SOC capabilities: Continuous monitoring for threats across access control, BMS, and cloud platforms, with documented incident response procedures.
Phishing and email protection: Many attacks begin with compromised vendor or staff email accounts that have access to building portals and systems.

Compliance frameworks now reach commercial properties

Compliance is no longer just for hospitals and banks. Commercial properties touch multiple regulated domains—payments, privacy, data protection, and sometimes specialized sectors like healthcare or defense tenants. Managed services growth is being driven by organizations seeking help with security and compliance.[5][6]

Relevant frameworks and rules for building owners and facility managers include:

NIST Cybersecurity Framework (NIST CSF): Widely used for risk‑based cybersecurity programs. An MSP familiar with NIST CSF can help document controls for building networks and systems.
NIST SP 800‑171 / CMMC 2.0: If you host defense contractors or process controlled unclassified information (CUI), their obligations can extend to IT environments used within your facilities.
SOC 2: Many SaaS providers serving buildings (access, visitor management, energy platforms) pursue SOC 2 to prove control maturity. MSPs that understand SOC 2 can align your processes with tenants’ expectations.
FTC Safeguards Rule: If your organization qualifies as a financial institution under this rule—common for certain leasing or payment activities—you must maintain a security program covering customer information.
PCI DSS: Payment processing in parking, retail, or amenity spaces must follow PCI DSS. MSPs can help segment networks and manage secure payment endpoints.
HIPAA: Medical office or healthcare tenants may require assurance that building IT does not inadvertently expose protected health information. While the building owner may not be the covered entity, weak infrastructure can still introduce risk.

Experienced MSPs can help translate these frameworks into practical steps: network segmentation, access controls, encryption, logging, and documented policies. As the managed services market grows, more providers are specializing by industry, including commercial real estate, healthcare facilities, and mixed‑use developments.

AI‑driven IT operations and proactive building management

The forecast emphasizes AI‑driven IT operations as a key growth driver for managed services. AI and automation are increasingly used in:

Predictive monitoring: Anomaly detection across building networks, servers, and cloud platforms to catch issues before they affect tenants or critical systems.
Automated remediation: Scripted responses to known problems—such as restarting services, adjusting configurations, or isolating compromised devices without manual intervention.
Capacity and performance optimization: AI‑assisted analytics to right‑size bandwidth, compute resources, and storage for building applications and video systems.

For facility managers, AI‑driven managed services can lead to fewer outages, quicker response times, and better visibility across portfolios. Transition toward agentic AI and autonomous IT service management orchestration is explicitly cited as a driver in recent market analyses.[4][9]

Before adopting AI‑enhanced services, building owners should ensure MSPs can explain their automation policies, safeguards, and escalation paths. AI must complement—not replace—clear accountability and documented SLAs.

How to evaluate MSPs as strategic partners for building portfolios

As managed services grow toward the projected $847.4 billion mark, the provider landscape is widening. For property managers and building owners, selection criteria should go beyond basic support.

Key evaluation factors include:

Service level agreements (SLAs): Defined response and resolution times for critical building systems, with 24/7 coverage where life safety or major tenant operations are involved.
Support hours and coverage: Ability to support after‑hours events, weekends, and holidays for multi‑tenant buildings, hotels, and mixed‑use assets.
Certifications and expertise: Staff with relevant security and cloud certifications, plus demonstrated experience in commercial real estate, industrial complexes, or healthcare facilities.
Security and compliance capabilities: Documented processes for EDR/MDR, SOC monitoring, MFA, patching, vulnerability management, and alignment with NIST CSF, SOC 2, and other frameworks.
Backup and disaster recovery: Tested recovery plans for building systems, servers, and critical data, with RTO/RPO aligned to your operational requirements.
Scalability and standardization: Ability to roll out consistent configurations and policies across multiple properties, regions, and building types.

Owners should also consider how MSPs engage in vCIO/IT strategy—helping forecast budget requirements, lifecycle plans for building systems, and long‑term modernization roadmaps that keep pace with cloud and AI trends.

Practical next steps for property and facility leaders

Given the scale and momentum of the managed services market, commercial property and facility leaders can treat this forecast as a planning signal:

Audit your current IT and building systems: Identify which assets are cloud‑connected, internet‑exposed, or mission‑critical. Document gaps in monitoring, backup, and security.
Map regulatory and contractual obligations: Note where NIST, SOC 2, FTC Safeguards, PCI DSS, or sector‑specific requirements are relevant based on tenants and services.
Engage MSPs for strategic discussions: Request proposals that address cybersecurity, cloud management, AI‑driven operations, and compliance for your specific building types—office towers, mixed‑use, healthcare facilities, industrial sites, or campuses.
Align IT investment with asset strategy: Treat managed IT and cybersecurity as part of capital and operating planning, not a secondary expense. The market data underscores that enterprises are increasingly investing here for resilience and competitiveness.

As managed services expand toward the projected $847.4 billion by 2033, building owners who proactively partner with qualified MSPs will be better positioned to protect their assets, satisfy tenants, and navigate the evolving regulatory and technology landscape.

Frequently Asked Questions

What is the ROI for commercial property managers investing in managed IT and cybersecurity services?

ROI comes from reduced downtime, fewer security incidents, and more predictable IT costs. Managed services convert irregular capital and emergency spend into structured operating expense. For multi‑site portfolios, standardized security and compliance reduce risk exposure and help protect asset value and tenant satisfaction over time.

How does managed services market growth impact compliance expectations for building owners?

As managed services grow, regulators and tenants increasingly expect professionalized cybersecurity and IT controls. Frameworks like NIST CSF, SOC 2, and the FTC Safeguards Rule set baseline expectations. Partnering with an MSP that understands these standards helps building owners demonstrate due care and reduce compliance‑related friction in leases and audits.

Are managed services relevant for smaller commercial buildings and regional portfolios?

Yes. Smaller buildings face the same cloud, cybersecurity, and compliance pressures as large campuses but often lack internal IT resources. Managed services scale down by offering shared expertise, standardized toolsets, and predictable pricing, making enterprise‑grade security and reliability attainable for regional portfolios and single‑asset owners.

What risks do building owners face if they delay engaging a managed IT provider?

Delaying engagement increases exposure to cyber incidents, unplanned outages, and compliance gaps. Cloud‑based building systems may be misconfigured, unpatched, or poorly monitored. In the event of a breach or prolonged downtime, owners can face tenant claims, reputational damage, regulatory scrutiny, and costly emergency remediation.

How should facility managers compare MSPs when issuing an RFP for building IT services?

Facility managers should compare MSPs on industry experience, documented SLAs, 24/7 support capabilities, security stack and SOC coverage, compliance knowledge, and references from similar properties. Evaluating project methodology, onboarding processes, and ability to support both IT and OT environments helps ensure a strong long‑term partnership.

Do manufacturer warranties or vendor contracts affect how MSPs can manage building systems?

Yes. Many building system manufacturers and cloud vendors specify supported configurations, patching approaches, and integration methods. MSPs must work within these constraints to maintain warranties and service agreements. Owners should ensure providers understand vendor requirements and coordinate changes to avoid voiding protection or support.

Find a Qualified Managed IT & Cybersecurity Contractor

Need help acting on this? Browse managed IT & cybersecurity providers in your area, or explore commercial managed IT services like preventative maintenance, inspections, and emergency response. Are you a contractor? List your business on My MSP Tech to reach IT and operations leaders actively searching for help.

Sources

Originally sourced from PR Newswire

managed services marketcommercial property ITfacility management cybersecuritycloud and AI for buildings