Investor Insights

Buyers are favoring small commercial properties, particularly single-tenant NNN and mixed-use assets. Cap rates for sngle-tenant NNN properties range from 5-7%, while mixed-use properties are seeing cap rates of 6-8%. Investors are seeking stable cash flow and potential for long-term appreciation. However, they're walking away from deals with high vacancy rates, outdated properties, or those requiring significant renovations. Other concerns include high property taxes, increasing insurance costs, and environmental hazards. Buyers are also cautious of properties with short lase terms or those with tenants in financially unstable industries. Overall, investors are prioritizing low-risk opportunities with strong potential for returns, driving demand for high-quality, well-located small commercial properties.