Definition: Risk arising from changes in economic conditions, technology, consumer preferences, or the business environment. These changes can alter a property's income or value.
Example
A shift toward remote work reduces demand for offices in a particular market.
Keep the distinction clear
Dynamic risk differs from hazards such as fire or theft commonly classified as static risks. Insurance availability depends on the specific exposure and policy, not just the label.
Related terms
Static Risk · Risk · Economic Base Analysis
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): dye-NAM-ik RISK (capitals show stress)
Pronunciation reference: Merriam-Webster
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