Investor Insights

Buyers are weighing small commercial options, particularly single-tnant NNN (net net net) and mixed-use properties. Cap rates for single-tenat NNN leases range from 5-7%, depending on location, tenant credit, and lease term. Mixed-use properties, offering a blend of retail, office, and residential space, typically command lower cap rates, around 4-6%, due to their potential for diversified income streams. However, buyers are cautious about properties with high management requiremets or those in areas with declining demographics. What makes them walk away? High cap rates alone aren't enough if the property lacks strong tenants, has siignificant deferred maintenance, or is in a less desirable location. Investors prioritize stability, predictable cash flow, and upside potential when evaluating these opportunities, making due diligence crucial in identifying the right small commercial investments.