Risk Considerations in Real Estate Investments

As an investment analyst, you have been asked to evaluate the risk considerations associated with a real estate investment. You are provided with a portfolio consisting of a commercial property, residential real estate, and a REIT (Real Estate Investment Trust).

Your task is to analyze the various risk factors associated with this portfolio. Discuss the specific risks posed by each type of real estate investment, including but not limited to market risk, liquidity risk, and operational risk. Additionally, recommend strategies to mitigate these risks and assess how they might impact the overall portfolio performance.

Consider external factors, such as economic conditions, interest rates, and regulatory changes, that can affect the real estate sector. Your response should showcase a comprehensive understanding of the intricacies of real estate investments and demonstrate the ability to formulate a risk-adjusted investment strategy.