Commercial Portfolio Reduces Water Risk and Achieves Rapid ROI

Context

A global real estate services firm responsible for millions of square feet of Class A office and residential space faced growing exposure to water-related risk. As insurance premiums increased and tolerance for unplanned damage decreased, property owners and insurers began requiring more proactive water leak detection strategies.

While the director of property management understood the potential impact of water damage, traditional detection approaches appeared cost-prohibitive and difficult to scale across complex buildings with numerous water sources. At the same time, the financial consequences of even minor leaks continued to rise, creating pressure to find a solution that balanced protection with budget discipline.

Data

The organization implemented *Nexa’s wireless water leak detection system across two buildings, deploying sensors strategically in locations with the highest likelihood of leaks, including mechanical rooms, common areas, water fountains outside restrooms, and spaces with a history of incidents.

Shortly before installation, a small water fountain leak on an upper floor resulted in $25,000 in repair costs. Following deployment, the system detected moisture in a mechanical room that would likely have escalated into a more significant event without early notification.

Notifications were delivered in real time, enabling administrators and engineers to investigate, resolve the issue, and reset the system before damage occurred.

Insights

Strategic placement of leak detection sensors delivered meaningful protection without requiring full coverage of every water source. By focusing on high-risk areas, the organization achieved strong coverage while maintaining cost control.

FM Approved certification provided additional value by aligning with insurer expectations and supporting potential reductions in insurance premiums and deductibles. Centralized, remote visibility reduced reliance on manual inspections and improved confidence across both ownership and operations teams.

Action

Engineers and administrators received immediate alerts when water was detected outside expected conditions. This allowed teams to respond quickly, address issues during early stages, and avoid disruption to tenants and operations.

The system was capitalized as a long-term risk management investment rather than treated as a reactive maintenance expense. Over time, the director of property management began advocating for broader adoption across additional buildings within the portfolio.

Value

The deployment delivered rapid and measurable returns.

• Achieved up to 800 percent ROI through avoided leak-related repair costs within the first months
• Strengthened compliance with insurer-driven risk mitigation requirements
• Improved confidence and experience among owners, operators, and tenants

As the director of property management noted, the cost of the system was lower than the repair cost of a single minor leak. The organization moved from a reactive posture to proactive water risk management, gaining both financial and operational benefits.