Cap Rate for Summerville SC

[Jason Merchey]

Does anyone have an idea of the cap rate for a 3-tenant office building, about 4,000'sq., on Orangeburg Rd. not far from Central Avenue in Summerville South Carolina? Basically Knightsville. Six year old building producing probably $10k in gross rents. A chiropractor, physician, and physical therapist rent the space.

[Troy Gandee]

@Jason Merchey Sadly, cap rates have shrunk a bit since @Devin D. was working in that area. Usually, commercial caps are a bit lower than residential anyways. That's typically because repairs are much less frequent other than capex. It's also hard to say what an average cap would be unless we know what type of lease you're aiming for. NNNs will always be a little lower than traditional leases because the NNN is much less hassle for you. I'd say an average cap for an NNN in that are and type of property would be 7(ish). And probably closer to 8 or 8.5 if you don't sign a NNN or version thereof.