How Low is to Low - Low Ball Offer

[Joshua Spurlock]

Hello all! I just sold my first portfolio of residential properties. I am looking to be more involved in the commercial arena. I will be 1031 exchanging the proceeds I have. My question is about a property I want to buy. The property is listed for $1,550,000 at a 6.36% cap. I would like to acquire the property on an 8% cap($1,232,250), which would allow me to pay cash for the deal. It is a single-tenant, commercial property, built in 2015 that has a triple net 15yr lease. Is the 8% cap too low of an offer? 

[Russell Brazil]

What is the prevailing cap rate in the location where the property is for class A? 2015 build would be a 3% cap in my market. 

I suspect an offer over $300k lower than the list price would not even get a response. I wouldn't put it on paper, but I might have a casual conversation with the listing agent instead.