What is unsystematic risk?
Risk specific to one asset, tenant, sponsor, project, or firm. In public-market theory diversified investors are not compensated for it because it can be diversified away, though concentrated direct-real-estate investors may still demand compensation.
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.