What is the denominator hiding?
A going-in cap rate can blend durable rent with temporary reimbursements, above-market leases, and expenses that have not reset. Ask which components of NOI remain after each lease event.
Rebuild the income
Normalize the property before debating price.
Mark rents to a supportable market level
Reprice taxes and insurance
Fund recurring capital below NOI
Apply downtime and leasing costs by suite
Price the business plan
The right yield depends on the work required to sustain income. Two assets trading at the same cap rate can carry radically different execution risk, capital needs, and exit liquidity.