Which elements are typically reviewed in a rent roll analysis to gauge concentration risk?

• A. Review tenants, space, rent, terms
• B. Revenue share by tenant
• C. Identify single tenants with large shares
• D. Ignore concentration risk

Answer: (A)

Concentration risk shows up when a single tenant or a small group accounts for a large portion of occupancy and income. To gauge that risk in a rent roll, you need the pieces of information that reveal who the tenants are and how much of the building they control and pay for. Review tenants, space, rent, and terms. These elements let you map out each tenant’s share of occupied space and of the income stream, and show when leases expire or renew. With that information, you can determine how much of the building’s rent is tied to major tenants and how exposed you’d be if one of them vacated.

While looking at revenue share by tenant can be informative, it doesn’t cover the full picture the rent roll provides—space distribution and lease terms are essential to understanding exposure over time. Identifying single tenants with large shares is an important outcome of the analysis, but it comes from analyzing the rent roll data, not from the rent roll data itself. Ignoring concentration risk would miss the point entirely.