Commercial properties are valued based on their cap rate, so while vacancy is important to a potential buyer the seller is going to take the current square-foot

Commercial properties are valued based on their cap rate, so while vacancy is important to a potential buyer the seller is going to take the current square-foot rental rate and multiply it by the total size to get the projected annual revenue. They can then offer an 8% cap rate or other attractive return on a much higher asking price. As soon as they lower lease rates to increase occupancy the asset value is impacted moving forward, so if you've got a big inventory of commercial real estate that you're looking to sell it may be worth it to keep it largely vacant for years. As a buyer you need to watch for new tenants at attractive rates as well. Sometimes the seller signs a 5 or 10 year lease with a connected company to drive up the cap rate, then a few months after selling the tenant defaults. As the landlord your recourse is limited, slow and expensive.