ANSWER

A sensitivity analysis (also called a “what-if” analysis) is a way to forecast outcomes based on various variables. It helps predict all the possible returns under varied economic conditions, including downturns. As there’s always a possibility that we may not achieve our rental forecasts due to either higher vacancy rates or lower rents than projected, it’s important to analyze possible "bad endings" so our investors are 100% clear on worse-case scenarios, as unlikely as they may be.

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