The Right Offer Price

[Rhonda Louis]

My husband and I are very new to commercial real estate investing.  We are looking at a property that is a triple net lease.  The way the lease reads it is very hands off.  On paper at this moment it looks great.  The cap rate is a little over 8%.  The lease is for 4 more years.  My concern with the property is it is being leased by a medical facility at this time.  It is in a smaller town, about 20-30 minutes away from a larger city.  This is one of 3 medical clinics already in this town, so there is a possibility they will pull out after the 4 years.  The estimated market value tax assessment is about $400,000 less than this property.  We have not actually got inside the building as we have our appt set up next week to see inside.  The outside could use a few maintenance things at this time from a drive around we did of the building.  We have not seen an inspection or appraisal yet.

Here is my question.  At this time it looks promising with the lease and cap rate, but it is only good for 4 more years.  How does that play into my offer price?  Does the estimated market value play into the offer price at all?  When we sold our residential real estate properties, we looked at EMV, and the percentage over what houses were selling, and that was how we determined what we wanted to sell them for.  Is there a way to look at this in commercial properties?

Thank You for any help/advice you can give!!