Commercial Property Cap Rate? Good Deal or Bad?

[Josh Delaney]

Im looking at a 24k sqft flex building that I currently rent from. It's a pretty awesome building 2 miles from downtown. Easy access to and from. Parking lot, garage doors, clean etc.

It's rent potential is $11.7k. it's about 1/2 rented and my business could take that empty half honestly. That's apart of the intrigue.

They want $1.4M for it. I got approved for an SBA at 10% down.

The cap rate seems to be 2.7% if I'm doing my math properly but I'm not sure.

Can anyone give me guidance or advice on what to look for or ask to the sellers etc?

This is my first commercial deal.

Thank you so much!