Commercial Property Acquisition Advice
Hi All - I operate a leased business. The landlord is looking to sell the property. He bought it for $1.23M in 2022. Said he’s asking $2.6M or a 6% cap (the property currently generates $13k/month in rental revenue). It’s a 40 year old property with mainly shorter term tenants. Not the nicest property by any means. I feel like 6% cap is a stretch and a realistic number is more in the 8% range (closer to a $2M sale price). Does anyone have expertise in this realm? Any advice?