Risk Analysis

15-Factor Property Risk Scoring — Instantly

Stop relying on gut feel. Solsten analyzes 15 quantitative risk factors to generate a composite risk score for every property in your portfolio — financial, occupancy, operational, and physical.

Score Your Property Free See Proforma Engine

Why Quantitative Risk Scoring?

Without Risk Scoring

  • • Subjective "this looks good" analysis
  • • Blind spots in tenant concentration or WALT
  • • No framework for comparing properties
  • • Surprise refinance risk from short debt maturity
  • • Break-even occupancy unknown until too late

With Solsten Risk Scoring

  • • Composite score (0-100) quantifies total risk
  • • 15 weighted factors cover all risk dimensions
  • • Side-by-side comparison across portfolio
  • • Debt maturity and DSCR monitored automatically
  • • Break-even occupancy calculated from live data

All 15 Risk Factors

Each factor is independently weighted and scored, then combined into a composite risk score

📊 Financial Factors

DSCR (Debt Service Coverage)

Can the property cover its debt payments? Below 1.0x means negative cash flow.

LTV (Loan-to-Value)

How leveraged is the property? Higher LTV means less equity cushion.

NOI Yield

Net operating income as a percentage of purchase price. Lower yield = higher risk.

Break-Even Occupancy

Minimum occupancy needed to cover expenses + debt. Higher = more fragile.

Cash-on-Cash Return

Annual pre-tax cash flow relative to equity invested.

Cap Rate

NOI divided by property value. Lower cap rates command higher prices.

Debt Maturity

Years until nearest loan matures. Short maturity = refinance risk.

🏢 Occupancy Factors

Current Occupancy

Percentage of rentable area currently leased. Vacancy erodes income.

WALT (Weighted Avg Lease Term)

Average remaining lease term weighted by rent. Short WALT = rollover risk.

Tenant Concentration

Largest tenant as % of total income. HBigh concentration = single-tenant risk.

⚙️ Operational Factors

Expense Ratio

Operating expenses as % of revenue. Higher ratio means thinner margins.

Recovery Ratio

How much of expenses are recovered from tenants via recoveries.

Revenue Growth

Expected revenue trajectory based on rent steps and market conditions.

🏗️ Physical Factors

Property Age

Older properties carry higher capex risk and potential obsolescence.

Building Size

Larger assets typically have better diversification and institutional appeal.

How the Composite Score Works

📥

Enter Property Data

Input your property details, expenses, tenants, financing, and investment structure through Solsten's guided workflow.

🧮

Automatic Calculation

Solsten computes all 15 factors from your live data — NOI, DSCR, WALT, occupancy, break-even — no manual entry needed.

📊

Visual Dashboard

See your composite score plus individual factor scores in the Reports dashboard. Click any KPI for a full timeline drill-down.

Risk Score Ranges

80–100

Low Risk

Strong DSCR, high occupancy, long WALT, diversified tenants

60–79

Moderate

Generally stable with some factors needing attention

40–59

Elevated

Multiple risk factors flagged — review recommended

0–39

High Risk

Critical factors (DSCR < 1.0, very low occupancy, near-term maturities)

Risk Scoring FAQ

What is a property risk score in commercial real estate? +
A property risk score is a composite number (typically 0–100) that quantifies the overall investment risk of a commercial property based on multiple financial, occupancy, operational, and physical factors. Higher scores indicate lower risk. It replaces subjective "gut feel" assessments with data-driven analysis.
What factors does Solsten use for risk scoring? +
Solsten analyzes 15 weighted factors across four categories: Financial (DSCR, LTV, NOI yield, break-even occupancy, cash-on-cash, cap rate, debt maturity), Occupancy (current occupancy, WALT, tenant concentration), Operational (expense ratio, recovery ratio, revenue growth), and Physical (property age, building size).
What is DSCR and why does it matter? +
DSCR (Debt Service Coverage Ratio) measures whether a property's net operating income can cover its debt payments. A DSCR below 1.0x means negative cash flow — the property cannot service its debt. Most lenders require a minimum DSCR of 1.20–1.25x.
What is WALT in real estate? +
WALT (Weighted Average Lease Term) is the average remaining lease term weighted by each tenant's rent contribution. A short WALT indicates significant rollover risk — many leases expiring soon — which can lead to vacancy and income disruption.
What is break-even occupancy? +
Break-even occupancy is the minimum occupancy percentage needed for a property to cover all operating expenses and debt service. A higher break-even percentage means the property is more fragile — even small increases in vacancy can push it into negative cash flow.
Do I need to calculate risk factors manually? +
No. Solsten automatically computes all 15 risk factors from the property data you enter — tenants, expenses, financing, rates, and market assumptions. The composite risk score and individual factor scores appear instantly in the Reports dashboard.

Know Your Risk Before You Buy

Solsten calculates risk scores automatically from your property data. No spreadsheets, no guesswork — just quantitative analysis in seconds.

Try Solsten Free

No credit card required. Full access during beta.