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  • Writer's picturePerceptive Things Team

Hidden Cost of Water Leaks for Commercial Buildings

Water leaks in commercial buildings have a wider impact than in multifamily or residential buildings. Not only because of the size of the building but also because the commercial building houses more employees and people and has more complex machines.

That being said, restoring water damage in commercial buildings is more costly than in multifamily buildings.

Therefore, commercial building owners need to understand the hidden costs of water leaks for their commercial property. And that is what we will discuss in this blog post. Keep reading to learn more!

Cost to Tenants

Loss of Work Productivity

Water damage in commercial buildings can disrupt the daily operations of tenants, leading to loss of work productivity and revenue.

For instance, water leaks can force tenants of commercial buildings to shut down their businesses temporarily while restorations and repairs are being made. This causes delays in customer service, production, and shipment.

Disruption of business operations and loss of work productivity can also damage the reputation of the tenant’s company or business, resulting in loss of revenue and customers.

Loss of Merchandise and Equipment

One of the most common ways water leaks impact tenants in commercial buildings is by damaging their valuable equipment and merchandise.

For instance, tenants own and use electronic devices for various tasks, such as stock keeping, managing employee hours, stock keeping, payment, etc. Even a minor water leak from the roof can damage this equipment leading to costly repairs.

Larger equipment, like specialized manufacturing equipment, can be lost as they are relatively harder to replace when damaged.

Moreover, water leaks can damage and lead to losses of merchandise like supplies and stock required for normal operations.

Other potential losses may include parts of the commercial building itself, like fixtures, flooring, ceiling, or drywall, that can be irreplaceable depending on the age and structure of your building.

Loss of Records

Among the lesser-known expenses tenants encounter as a result of water damage is the loss of valuable records. Whether in the form of delicate paper files scattered around the office or electronic systems storing crucial data, water poses a significant threat to these essential documents.

For example, water can swiftly ravage paper records, rendering them unreadable and irretrievable. Additionally, it can wreak havoc on the electronic infrastructure supporting paperless records, affecting inventory control equipment, laptops, desktop computers, time tracking systems, and more.

The process of recovering these lost documents can prove both time-consuming and financially burdensome, making it essential for tenants to remain vigilant and proactive in safeguarding their records against potential water-related incidents.

Cost to Building Owners

Cost of Restoration

While it is possible to restore and repair water damage in commercial buildings yourself, significant water damage will likely require the services of a certified water restoration company. This is especially true when dangerous chemicals, fuels, or human waste contaminate water.

The average cost of restoring water damage in commercial buildings is about $3,300.

However, it can be as low as $200 and as high as 20,000 depending on a variety of factors, which include the following:

  • Location of the damaged area

  • Size of the damaged area

  • Class or category of water damage

  • The severity of water damage

  • The geographical location of the restoration company and your building, etc.

Decrease in Tenant Renewals

A commercial building that can not be occupied because of water leaks or damage can potentially cause a loss of rental income. This is because tenants may decide to vacate when the commercial building is water damaged.

Besides, repairs done for damaged buildings may slow or shut down the tenant's activities, causing loss of customers or short-term income losses. This frustrates many tenants, resulting in a decrease in tenant renewal.

Cost of Insurance

Water leaks may potentially increase insurance premiums for commercial buildings. For instance, insurance companies consider water leaks and damage a high-risk case. As a result, they tend to increase the insurance premium for commercial buildings with a history of water leaks and damage claims.

When you add the increased insurance premium to the overall cost of running your commercial building, profitability will be compromised. You may also incur losses that are not fully covered by your insurance.

Finally, insurance repair projects and claim processes are time-consuming and need commercial building owners to spend more time and resources away from their properties.

Preventing water leaks in commercial buildings

One of the best ways to prevent water leaks in commercial buildings is to install water leak sensors inside your commercial building. Leak sensors will notify you via text, call, or email immediately after they sense a leak so you can manage it promptly.

This will help you prevent further damage and save you the hidden costs of water leaks in your commercial building.

While there are many types of smart sensors for commercial buildings, at Perceptive Things®, we have three water leak sensors that can help protect your commercial building by detecting water leaks before they cause extensive damage.

Droplet Solo™ water leak sensor

The Droplet Solo™ will be your Water Damage Guardian! This compact leak sensor features an IP-67 rating and an audible buzzer alarm when water is detected.

With its unobtrusive design measuring just 63mm x 63mm x 14mm, it seamlessly fits into any space while providing reliable water damage protection for 4 to 5 years on a single CR24505 battery.

Droplet Duo™ water leak sensor

The Droplet Duo™ water sensor is a dual leak detector with separate wireless notification technologies for each probe. For instance, it is a two-in-one leak sensor.

It comes pre-configured for your commercial building and is easy to install. You only need to use the 3M adhesive pads to secure the detector to surfaces.

Droplet Pro™ water leak sensor

The Droplet Pro™ water sensor is an industrial-grade IP-67-rated water detector.

Its body has internal magnets, making it easy to mount the leak detector on iron surfaces like beams. It uses a 3-meter rope detector to sense the presence of leak leaks along its entire length.

Furthermore, it has a long battery life of 4-5 years, so you can be sure your building is well monitored for any possible water leaks 24/7.

Final thoughts on the cost of water leaks for commercial buildings

Water leaks in commercial buildings are a common but unfortunate event. It is associated with many hidden costs, as discussed in this article.

Installing water leak detectors at the right places inside your commercial building can help prevent incurring these unnecessary costs.

We hope this article has helped guide you through the hidden costs of water leaks in commercial buildings. If you have unanswered questions, feel free to contact our team at, we will be happy to help.

Has your commercial building dealt with water leaks before? What were the hidden costs you incurred?

We would love to hear about your experience via the comments section!

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