Some of these risks include: a deterioration in national, regional, and local economies; tenant defaults;
local real estate conditions, such as an oversupply of, or a reduction in demand for, rental space; property mismanagement; changes in operating costs and expenses, including increasing insurance costs, energy prices, real estate taxes, and costs of compliance with laws, regulations, and government policies.
Property records and data are reviewed at many different levels (neighborhood, zip code, town, region, etc.) in order to gain a deep understanding of
the local real estate conditions.