Since this is considered a commercial property, would I be correct in saying the price would not fall with home prices if the market was to decline, considering how commercial property value is based on the revenue they bring in instead of the value of similar buildings?

The first two applicants gave me a decline recommendation the third was an accept.

There were pluses and minuses with all these areas (high taxes, high crime, distance, declining or stagnant downtowns).I chose Historic Allentown, PA.It’s 1.5 hr door to door from Brooklyn on a weekend morning.

and I heard nothing from the seller for the next 24 hours... even after my offer expired with no accept or decline.

I declined.

So you simultaneously have a shortage of housing (for most people) and a glut (for a small portion of the market), with rents flat or declining and concessions appearing.In smaller markets, like the ones where you and I are active, the same dynamic has been at play, although the construction probably has not been as active.  

I initially thought that I would wait for a market decline, but I don't want to be looking back 3 years down the road and wishing I took advantage of the cash flow. 

Stock markets have declined before, without real estate crashes.  

If your documented criteria is only 600+, these folks don't qualify and you could expose yourself by accepting them and declining someone else similarly low.

However, and again, if the 10YT rises above 2-3%, unless we see some serious rent inflation (we probably would) prices will decline as cap rates expand.