Dialysis clinic in Texas

[Bharath Raj]

Hi Everyone,

I am looking at underwriting a multi-tenant property with a well known dialysis tenant who have exercised their first renewal option of 5 years, with 3 more remaining. The building also oddly has a pizza franchise, which has been there long-term. While a cap rate in the 6.5% range is reasonable for a new lease with 10+ years on the initial term, I am curious to see how it changes, once it' further along. Any thoughts would be greatly appreciated.