Why Some Landlords Take Y2K Too Lightly

With the millennium looming, some commercial landlords “are not as concerned as they should be” about potential high-tech glitches, says David Anastos of Bayshore Partners Inc. of Newport Beach, which handles real estate transactions for companies.

Computers that fail to recognize the year 2000 could cause fire, security or elevator systems to fail, he warns. For instance, if computer systems collapse, a fire could go unnoticed, a sprinkler could be activated or an elevator could stop, trapping employees, he said.

“I think 50% of landlords will have problems,” Anastos said. Another 15% to 25% have taken steps to mitigate any glitches, while the rest are in buildings that are less dependent on technology and will likely be unaffected, he said. But a recent national poll reached a different conclusion, finding that, at most, only 5% of the buildings could be affected by the millennium bug. The survey, based on 1,500 responses, was conducted by the Building Owners and Managers Assn. International, a Washington, D.C.-based trade group; the U.S. General Services Administration; Buildings magazine, and the White House Council on Year 2000 Conversion.

The survey also found that two of three companies have completed a written plan for dealing with Y2K issues in their buildings, and a similar percentage have completed half of the necessary system changes. One-third of those responding also have at least partly completed a contingency plan.

“This . . . should help assure the public that buildings and facilities will be ready for the century date change,” said Bill Garland, president of the building owners trade group.