Commercial RE Property Leases

[Jaspreet S Bhatia]

Hi Folks,

I am just starting out as a Commercial RE investor and was looking into one Property which is rented out to the Veterans Affairs ( US Govt ) . All the numbers work out , the CAP rate is good , the Cash-on-Cash return seems above average . The only issue that I see is that the VA has a 10 year lease that ends in less than 2 years . So what usually happens after the VA lease expires . Do they usually renew ? How can I ensure or find out for certain that they will renew . I don't want to be in a position of looking for new Tenants so soon . If anyone can provide some feedback into this , or have been in this situation . please advise .