CalculateRealEstateROI

Portfolio Building

Concentration Risk

Risk arising from over-exposure to a single market, asset class, tenant, or lender.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

If one market drops 20% and you have 80% there, your portfolio drops 16%.

Examples

  • 80% of portfolio in one metro = high concentration risk.

Common mistakes

  • Ignoring tenant concentration in small commercial.

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