Real Estate Risk Advisory Services

Capital in commercial real estate is no longer rewarded for simply “buying well” and waiting. Investors, lenders, and developers are operating in an environment defined by interest rate volatility, construction inflation, structural shifts in demand, climate risk, and tighter credit standards.

In that context, you don’t just need a view of value—you need a defensible view of risk.

HSE’s real estate risk advisory services are built for institutional stakeholders who must explain, document, and actively manage risk at the asset, development, and portfolio levels. We work on the owner and capital side to help you identify, quantify, and mitigate risk across your investments and programs—so you can make better decisions and stand behind them in front of investment committees, credit committees, boards, and regulators.

Guided by commercial real estate executive Jeffrey S. Davis, RA, who has overseen more than $5B in investments and millions of square feet of development, our team brings together real estate risk advisory, portfolio analysis, and development management expertise in one integrated advisory platform.

Independent Real Estate Risk Advisory for Institutional Stakeholders

Unlike brokers, managers, or capital markets intermediaries, our mandate is independent, owner-side risk analysis. We are not selling product, placing capital, or trying to close a transaction—we are focused on protecting your downside and clarifying your exposure.

Portfolio and Asset-Level Risk Assessment

We provide real estate portfolio risk advisory and asset-level risk assessment that look beyond headline NOI and cap rates. Typical work includes:

• Asset-level risk reviews – lease, tenant, rollover, credit, and cash flow resilience
• Real estate valuation and risk advisory – connecting valuation assumptions to genuine risk factors
• Real estate portfolio risk assessment – exposure by geography, asset type, tenant concentration, lease rollover, and capital needs
• Real estate portfolio stress testing – testing your portfolio against shocks in rents, vacancy, cap rates, interest rates, and capex
• Climate risk advisory for real estate portfolios – assessing physical risk, regulatory and ESG pressures, and their impact on long-term value

The result is a clear view of where risk is concentrated, where it is manageable, and where it may justify changes in capital allocation, business planning, or disposition strategy.

Market, Credit, and Counterparty Risk

Institutional portfolios are increasingly exposed to market, credit, and counterparty risk that doesn’t show up in a simple pro forma:

• Market and submarket fundamentals, including structural demand changes
• Tenant credit quality and concentration risk
• Counterparty risk around sponsors, operating partners, and contractors
• Exposure to refinancing and interest rate risk

Our real estate risk consulting work links these factors back to your investment theses and underwriting assumptions, providing a more realistic view of return vs. risk.

Risk Advisory Across the Real Estate Lifecycle

Real estate risk is dynamic. It evolves from acquisition through development, stabilization, and exit. Our real estate risk advisory follows this lifecycle and engages where risk is most acute.

Step 1:Investment & Acquisition Risk Assessment

• Deal-specific asset and market risk assessment
• Sponsor, structure, and counterparty risk review
• Initial valuation risk and downside scenario analysis
• High-level assessment of development, entitlement, and execution risk, where applicable

Focus: What must be true for the deal to perform—and what happens if it doesn’t.

Step 2:Development & Construction Risk Advisory

• Review of development feasibility and key risk assumptions
• Zoning, entitlement, and political risk assessment
• Construction schedule, phasing, and procurement risk analysis, leveraging HSE’s CPM scheduling and project controls expertise
• Evaluation of delivery and stabilization risk relative to market conditions and capital structure

Grounded in real-world delivery experience, not theoretical models.

Step 3:Portfolio, Climate & ESG Risk Integration

• Identification of ESG- and climate-related value and risk drivers
• Analysis of regulatory, disclosure, and resilience impacts on valuation and business plans
• Recommendations for phasing, capex, and modernization programs that reduce long-term risk

Outcome: ESG and climate considerations treated as material risk inputs—not marketing themes.

Real Estate Risk Advisory for Different Stakeholders

Risk looks different depending on where you sit in the capital stack. Our real estate risk advisory is tailored to each stakeholder’s role, exposure, and obligations.

• Investors & REITs
  Risk-adjusted return analysis, portfolio stress testing, and independent valuation and risk review to support capital allocation, dispositions, and capex decisions.
• Lenders & Capital Providers
  Independent asset and sponsor risk assessment, construction and lease-up risk analysis, covenant and structure review, and ongoing monitoring to support credit committee decisions.
• Developers & Co-GPs
  Guidance on development, entitlement, and construction risk; contingency and phasing strategies; and positioning projects with investors and lenders based on risk, not just upside.
• Corporates & Public Agencies
  Risk frameworks for capital programs, multi-site portfolio assessments, and support for RFPs, PPPs, and mission-critical projects where execution and governance risk matter.

Our Real Estate Risk Advisory Approach

Our approach combines data-driven analysis, scenario thinking, and clear communication.

#1.Data-Driven Risk Modeling and Stress Testing

We integrate your models, appraisals, and asset data with our own analytical frameworks to perform:

• Asset and portfolio-level scenario and sensitivity analysis
• Real estate portfolio stress testing across macro, market, and asset-specific assumptions
• Targeted valuation risk advisory on where value is most at risk—and why

The outputs are designed to be understandable by non-technical decision-makers while still satisfying technical reviewers.

#2.Scenario Planning and Mitigation Strategies

We don’t just label risks—we help you design mitigation and structuring options:

• Alternative capital structures and leverage profiles
• Phasing, entitlement, or scope adjustments for developments
• Capex and modernization strategies that change risk, not just appearance
• Governance improvements that make risk more visible and manageable

You see not only what the risks are, but what you can do about them.

#3.Reporting for Investment Committees and Credit Committees

Finally, we package our real estate risk advisory services into formats your stakeholders can use:

• IC- and board-ready memos and presentations
• Credit committee summaries and risk sections for underwriting packages
• Risk registers, dashboards, and follow-up action plans

Our goal is that you walk into the room with clear, documented, and defensible risk analysis—not just a spreadsheet.

Frequently Asked Questions About Real Estate Risk Advisory Services

Give Us a Call Today!

If you’re underwriting a commercial acquisition, recapitalization, development, or land deal, you don’t need more reports—you need a defensible view of risk.

Share your deal with HSE and we’ll help you validate the investment thesis, identify and quantify key downside risks, stress test value and returns, and translate findings into clear pricing, structure, and go/no-go decisions—backed by IC- and lender-ready documentation.