Updated over 10 years ago on . Most recent reply
Cap Rate on Triple Net Lease
Just throwing this out there. What would be the appropriate cap rate on a triple net lease, with a 10 year term, for a new construction 90% heavy equipment shop, 10% office space?
The building is located in a rural town of approximately 60,000 in the western US with a very strong micro-economy.
The tenant is a company that has been in business for >20 years, 700 employees, privately held, generating approximately $60 million in annual revenue; $6 million in net income. There's also no personal guarantee, but with that said, to what extent would a personal guarantee effect the cap rate on the value?