What to know about Warehouse / Commercial Space

[Aaron Foster]

I'm in the process of purchasing a muti -unit property inside the DC beltway and the owner also mentioned he might be selling 2 of his warehouses if I were interested. This type of commercial is something new to me.

I get the concept of cost per sq ft / yr based on the type of commercial and location BUT can you have it appraised and refi for more (Like a BRRR), does it depend on the current lease? 

Do people purchase these properties based solely on Cap Rates? He mentioned that he rent hasn't been changed in about a decade "because they're good tenants" so Its probably below market.  Just trying to get some insight so I can have an educated conversation when it comes to negotiating. 

Example:

Purchase Price: $500,000

Income Per Month: $15,000

Expenses Per Year: $100,000
NOI = Annual Income – Annual Expenses or (12 x $15,000) – ($100,000) or $80,000
Cap Rate = NOI / Property Price or $80,000 / $500,000 or 16%