What is business risk?
Variation in NOI from economic and market conditions: recessions, tenant demand, new competing supply. Managed by market selection, tenant diversification, staggered lease expirations, and scenario underwriting.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.