What are the main risks of investing in commercial real estate?

Key risks in commercial property investment include:

• Void periods – times when the property is vacant and not producing rent.
• Tenant default – tenants falling behind on rent or going out of business.
• Market risk – changes in interest rates, demand, or local economy.
• Obsolescence – buildings becoming outdated or failing to meet modern standards.

Careful due diligence, good location choice and strong tenant selection can help reduce these risks.