Analyzing 2 office buildings in one deal

[Ben Bakhshi]

I'm looking at 2 buildings for sale, the deal includes a lot to expand.

Asking price is 1.3 million with a 9.2 cap after stated NOI.

B-class buildings in a good suburban town outside of Atlanta.

One of the issues that I have is that over $54,000 of the annual income is from month-to-month tenants, and over $17,000 is from 6 and 12 month leases. The rest are 2-5 year leases.

How much are cap rates affected by month-to-month leases? How do I pick what cap rate to negotiate towards?

(I have been buying residential until now and I'm still learning the commercial game.)