Question on commercial property listed by a broker
I recently ran across a property that was listed by a broker. It was built in 2019, and it is listed as a .70% cap rate. It is only 43% occupied. They gave the proforma, and if ALL the projections of that proforma were to happen, it would be worth 1.9 million. They are asking 1.6 million for the property. But at 43% occupied, and all the expenses, current NOI, etc., it isn't worth anywhere near that price. Why would they try to command such a high price, if it is over half empty?