Air-conditioning and mechanical ventilation (ACMV), power distribution systems, elevators, and lighting systems are critical electrical assets of a smart building. Based on electrical components of these assets such as electrical motors, transformers, solid-state lighting and power electronic converters, a detailed analysis of failure mechanisms and statistics is presented in this paper. Further, suitable electrical and mechanical signals along with prevalent condition monitoring methods are suggested for condition monitoring of these assets based on the presented statistical analysis. This paper lays down the necessary foundation to understand the operating model of critical electrical equipment in buildings and provides a holistic picture for implementation of a predictive and preventive maintenance paradigm. This will enable the building operators to identify potential failures of building equipment and their evolution in real-time, driving decisions on scheduling repair or replacement of components to minimize downtime, save maintenance costs, improve occupant satisfaction, save energy, and maximize resilience. © 2020 IEEE.