A sensor system provides measurement of building interstory drift based on a laser beam impinging on a discrete diode sensor array. The diode sensor array determines the location at which a projected laser bean strikes the array, which provides a direct measurement of interstory drift. The diode sensor array is a two dimensional array of discrete diodes that allow the location of an impinging laser beam to be very accurately tracked as the beam moves back-and-forth across the diode array. Local rotations of the laser source that result from rotations of structural members (e.g. floor beam rotation) are appropriately corrected for. This allows accurate, dynamic measurements of the interstory drift between two floor levels of a shaking building.