While returns have dominated the CRE conversation over the past decade of growth, recent volatility has amplified many investors' concerns about the other side of the coin: risk. From hotels to shopping centers to office buildings, people are paying attention to risk. The market has already experienced tremendous change and it is difficult to forecast which further changes will occur.

In both commercial and residential real estate investing, understanding the roles and responsibilities of each player is critical for achieving success. Among these, the role of the sponsor stands out as one of the most pivotal. For those new to CRE or seasoned investors looking to optimize their portfolio, understanding the function and importance of the sponsor is essential.

Trying to evaluate a multifamily apartment building for its potential as a commercial real estate investment? Here are our most important considerations when evaluating a new deal.