Interest Rate Sensitivity: Rising interest rates can increase WSR's borrowing costs for existing debt and new acquisitions, potentially compress property valuations, and reduce the attractiveness of dividend yields relative to fixed-income investments.

Tenant Financial Distress: As a retail REIT with a focus on small to medium-sized and service-oriented businesses, WSR is exposed to the risk of tenant bankruptcies, defaults, or non-renewals, leading to increased vacancies and lost rental income, especially during economic downturns.

Economic Downturns: A significant decline in consumer spending or local economic conditions within WSR's Sunbelt markets (e.g., Texas, Arizona, Florida) could negatively impact tenant sales, leading to lower occupancy rates, reduced rental income, and difficulty in re-leasing properties at favorable terms.