Need advice on a triple net lease that just came up in Austin

I'm looking at a 10 year NNN lease for a 2,500 sq ft retail space off Lamar Boulevard. The base rent is $38 per foot but the CAM charges seem high at $7.50 per foot. Has anyone else dealt with landlords who pad the common area costs?

2 comments

2 Comments

riverknight1d agoMost Upvoted

What's the cap rate on this thing? $7.50 seems like they're throwing in the kitchen sink.

david_adams1d ago

Cap rate on that deal has to be underwater. $7.50 is insane. No way that cash flows unless they're giving away the property for free. Something smells off about that number.