Short lease term remaining question

[1234blue]

I am appraising a 25,000 sf office/warehouse that is currently under contract and leased to a publicly traded tenant. The tenant has been at the property since 1992, but their lease is expiring at the end of this September (2 months remaining on lease). The buyer says its highly highly likely that the tenant will renew, but there is nothing in writing. Any advice if (and if so how much) this would impact cap rate or v&c?

 

[George Hatch]

All RE is local but that's a pretty marketable size on both the sale and rental ends. Unless the contract rents are out of line I wouldn't expect the prospect of going vacant would affect the pricing or the cap rates.