Need help on Commercial numbers

[Bob Romano]

Hey guys, need some help on valuing a commercial bldg I'm presently renting now, with an option to buy. Here are the numbers:

The asking price $2 mill, has an NOI of $212,000 a year. This would put it a 11% CAP rate. My offer is more around 1.2- 1.5 mill which would put it a 14-17% CAP , The cap seems awfully high at these numbers, what am i missing?