I suck at negotiating commercial properties. Need help!

[James W.]

I am trying to break into the commercial real estate market. I have $600,000 down payment right now and already have been preapproved by my bank. But I really stink at negotiating.

I am in Southern California. One 20,000 sq ft property far inland with a 9% cap rate was asking for $1.6m, I offered $1.4 and all I was able to get the seller to come down is to $1.59.

Another 8500 sq ft property in a better area closer to the beach with a 6% cap rate was asking $1.69 and I offered $1.4m and he was only willing to go down to $1.65m.

I was hoping both properties would be willing to go down to $1.5m. Do you think that is too unreasonable?

Do commercial properties usually sell at their asking price? Is there a rule of thumb? This is really frustrating.