REIT Risks Explained: Key Factors Investors Must Check Before Investing In Commercial Real Estate
REIT Risks Explained: Key Factors Investors Must Check Before Investing In Commercial Real Estate
Sakshi Batra
- Updated Oct 10, 2026 5:00 PM IST
REITs offer exposure to commercial real estate, but investors need to assess several factors before investing. The underlying properties, tenant quality, location, occupancy levels, rental agreements and escalation clauses can influence the cash flows generated by a REIT. Sanchita Mukherji, Senior Business Economist & Market Observer, Managing Partner, Talk The Walk LLP, explains the key risks investors should track, including valuation risk and sensitivity to interest rates. With REITs using debt and leverage, higher borrowing and refinancing costs can impact income. The discussion also explains why investors should assess valuations and interest-rate trends before making investment decisions.
