Price it as two things at once. You own a bond-like coupon for 11 years and a piece of rural real estate afterwards, and the cap rate is the market blending them for you. At $12.40 a foot in a town of 1,800, the honest question is what the second-generation rent is. If a regional hardware operator or a church or a farm supply would take that box at $5 to $6 a foot, your post-lease value is somewhere around $450k to $550k before you spend on demo of the interior fit-out and a leasing commission. That's a 60% haircut to today's price, and it means most of what you're buying is the rent stream, so you should be amortizing the building toward that number in your own model rather than assuming a resale at a similar cap.
The assumption carrying the whole analysis is whether the store's sales support the rent. Ask for unit-level sales if the tenant will share them, and look at rent as a percentage of store revenue. Under roughly 8% is comfortable, over 12% and renewal gets decided by a real estate committee looking at a spreadsheet, not by the fact that it's the only store in town. Being the only store in the trade area helps only if the trade area itself isn't shrinking. Pull county population trend, not town.
The part that tends to bite in rural net lease is financing rather than tenancy. Small-town single tenant is a hard appraisal, local banks will want recourse and often a 10-year term with a 20-year amortization, and if your loan matures with two years of lease left you're refinancing into exactly the uncertainty you're trying to price. Confirm the actual term and recourse in writing before you get attached to the yield.
