In which order should the BROIL investment property categories be ranked in terms of ascending risk?

To rank the BROIL investment property categories in terms of ascending risk, beginning with undeveloped land is appropriate. Undeveloped land typically represents a lower risk as it often requires less ongoing management and has no operational costs or tenants to contend with. Its value is primarily speculative and contingent on future developments and zoning laws, but it does not carry the burden of negative cash flows associated with tenant occupancy.

Following this, residential rentals can be considered slightly riskier. While residential properties provide a generally stable cash flow through rental income, they also entail management responsibilities, ongoing maintenance costs, and the risk of vacancies or tenant default.

Next in ascending risk is business realty or office spaces. This category tends to experience more volatility due to economic conditions and the potential for longer vacancy periods. Businesses may relocate, downsize, or close, affecting occupancy rates and rental income.

Lastly, industrial properties are often ranked as the highest risk due to their specific market segments, economic dependence on industrial health, and potentially lengthy leasing contracts. Economic downturns can significantly impact the demand for industrial space, making it a more uncertain investment.

Thus, the sequence established is consistent with a careful assessment of risks associated with each type of real estate investment, with undeveloped land bearing the least risk