Your effective rent math is close enough to work with. $108,000 plus $12,600 of free rent is $120,600 of cost against $252,000 of contract base rent over ten years, so before any commission you're at roughly $7.30/sf of net effective, and adding a leasing commission of 4 to 6 percent of term rent pushes it lower. Discount those flows and it gets worse, because the concessions are all in year one and the rent arrives over a decade.
The number to test is not the TI, it's what the $60/sf buys. A bakery is one of the more expensive fitouts in small retail. Grease and steam venting, a make-up air unit, a 200 amp or larger service, and a grease interceptor are common, and on an older building the interceptor and the electrical upgrade land on the landlord side of the line more often than people expect. If a chunk of that $108,000 is going into infrastructure that stays with the building and serves any future food use, it's worth more than if it's going into millwork and a display case that leaves with the tenant. Split the budget into what stays and what walks, and only treat the part that stays as improving the asset.
A bakery at 6am also sits under eight apartments. Exhaust fan noise and delivery hours generate residential complaints, and you own both sides of that fight. Put quiet hours, delivery windows, and fan specifications in the lease before you sign.
What I'd stress most is the fourteen months dark. If asking is $14 and nobody has taken it in over a year, the market clearing rent may be $11 or $12, and this bakery's demand is priced concessions rather than rent. Underwrite the suite at the concession-adjusted number as your going-forward assumption, not at $14, or you'll buy the building on a rent roll that never repeats. Also confirm with your lender whether they'll hold back proceeds until the suite is leased, because that changes your cash at closing more than the TI does.
