Is a 7% cap rate realistic after NOI adjustments for a small retail strip?

[Avery.P]

I'm analyzing my first potential commercial real estate investment, a small retail strip, and while I understand the basic cap rate formula, I'm struggling to assess if the quoted 7% cap rate is actually good given the property's age, location, and the current interest rate environment. I know I need to underwrite with realistic expenses and vacancy, but I'm unsure how to accurately project maintenance costs and account for tenant rollover risk in my model. For experienced investors, what are the key adjustments you make to a seller's pro forma to get to a true net operating income, and how do you determine your target cap rate for a specific asset class and market?