Vacant Commercial Building Evaluation

[Jake Dadon]

Hey All,

New member here...

Basically my question is what kind of cap rare the current investor out there are looking for?

I own a vacant building in the process of rehabbing it. Currently it's vacant but fair market value of rent in that area should be around the $1.25-1.5/s.f + NNN (roughly $0.3/s.f).

I came up with that rent, based on comp, the facts it is a single story, stand alone building, 2,300s.f., half acre lot with about 30 parking spots, centrally located.

In addition, the new tenant will have everything new and built to suit.

So with that said, I would guess 8% should be fair... Making it at a price point of $475K.

Your thoughts?