Tenant Industry Exposure Calculator

Sector concentration amplifies downturn risk. This calculator weights the exposure.

Rent roll

Retail %

Restaurant/hospitality %

Office/tech %

Industrial/logistics %

Top-sector recession sensitivity %

Weighted recession exposure

$915,600

Top sector share %

35.00%

Diversification score

4.43

How the math works

Weighted exposure applies per-sector recession sensitivities: retail 35%, restaurant 40%, office 18%, industrial 10%.

Diversification score = 1 ÷ HHI (higher is better). A portfolio that scores 4.0 effectively looks like 4 equal sectors — anything below 2.5 should trigger sector rebalancing at the next acquisition window.

How to Use

Enter rent roll.
Enter retail share %.
Enter restaurant/hospitality %.
Enter office/tech %.
Enter industrial/logistics %.
Enter recession sensitivity of top sector.
Read weighted recession exposure.

Frequently Asked Questions

Sector sensitivity?

Retail/restaurant: 25-45% revenue hit in severe recession. Office: 10-25% (lagged by lease term). Industrial: 5-15%. Medical/essential: 0-10%. Apply sector share × sensitivity to estimate portfolio income hit.

Diversification target?

No single sector >40%. Ideally <30%. Mixed sectors hedge against individual cycle downturns. Pure single-sector portfolios (office REIT, retail REIT) have structural beta that single assets don't.

Geographic overlay?

Industry × geography interaction — tech-heavy office in tech city is double-concentrated. Don't evaluate sector exposure in isolation; layer metro-level industry concentration on top for full picture.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.