1st commercial property - Help with Cap Rate
Background: This week I'm planning on putting an offer down on my first commercial property, I only own one other rental (residential).
1. The asking price is $370,000, it was recently sold 2 years ago for $350,000. The selling company is an LLC for the corporate Tenant, they are looking to move assets off their books.
2. Trying to get myself out of paralysis mode, I think this is a good deal but I am worried about the corporate tenant leaving, they do have 2 10 year options ahead of them and 7 years remaining on their current lease. The business is has been there for 20 eyars, so my worries may just be that... ugh..
Question: Any advice on what to look for regarding cap rate for commercial property w/ partial NNN lease? I've heard 5%, 8%, 10%, 12%...