The risk is always present due to the region's geography and climate and it's crucial to have a solid preparedness plan and adequate insurance coverage. 

I wonder if other mixed-use landlords have clauses in leases that address the mixed nature.

What kind of taxes he will incur depends on the nature of your "partnering." 

I have found returns adequate, but it's the customer service and management that stands out. 

They are by that very nature going to have higher risk based just on that fact alone. 

Is there an easy way to track natural appreciation?

They are the source and any other source, here for example, is not adequate, not accurate and highly likely wrong..

I definitely have some insight on what type of large markets to invest in that are metro in nature that attract not only business travel but also have multiple industries as to keep the overall investing strategy strong.

I actually sold a great 3 story building that I could not get adequate fire escapes built on because I did not want the liability of tenants living on the 3rd floor with only one means of egress.

It speaks for the humble nature of locals that they are happy.