Medical Office With Exam
For Sale
$787,500
1553 Route 27, Franklin, NJ 08873
COMMERCIAL - Franklin, NJ
Property Size3,500 SF
Price / SF$225
Days on Market182
Property Features for 1553 Route 27
General Information
Property type
Commercial Sale
Property subtype
Other
Parking features
Parking Lot
Directions
Strategically located near Routes 1, 287, and 440 and in close proximity to Robert Wood Johnson University Hospital and Saint Peter's University Hospital. Dense surrounding residential population with strong healthcare demand. Established medical corridor with long-term tenant stability.
Standard status
Active
APN
08 00394- 13-00083
Size
3,500 SF
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Floors in Building
1
Listing Agency:
Sitar Realty Company
(732) 449-2000
Listed By:
Luan Kichen
(732) 449-2000
Added: Mar 2
Changed: Aug 4
Last Checked: Aug 31 at 4:06AM
MLS# 22605494
Copyright © 2026 More MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 3,500-square-foot medical office is arranged for patient care and professional operations, with 6 exam rooms featuring plumbing, 3 consultation rooms, and a private physician office. The layout also includes a large reception and waiting area, laboratory, kitchen, utility closets, and 4 private ADA-compliant restrooms. Separate physician and patient entrances support distinct access patterns within the suite.
The property is located at 1553 Route 27 in Franklin, NJ, with a parking lot and public water and sewer service. A fire sprinkler system is installed, while the two-zone HVAC system and water heater are both less than 1 year old.
The property is located at 1553 Route 27 in Franklin, NJ, with a parking lot and public water and sewer service. A fire sprinkler system is installed, while the two-zone HVAC system and water heater are both less than 1 year old.
Key Highlights
- 3,500 SF medical office with 6 plumbing‑equipped exam rooms
- 3 consultation rooms plus a private physician office
- Separate private physician and patient entrances
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$53,550
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.80%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,071,000
$1.1M
Cap Rate 7%
$765,000
$765.0K
Cap Rate 9%
$595,000
$595.0K
Market Conditions
NOI Build-Up for 3,500 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$105.0K $30.00/SF
− Vacancy
−$33.6K −$9.60/SF
EGI
$71.4K $20.40/SF
− OpEx
−$17.9K −$5.10/SF
NOI
$53.6K $15.30/SF
Area
Sussex County, NJ
Vacancy
32.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,071,000
Cap Rate 7%
$765,000
Cap Rate 9%
$595,000
Alternative Uses
Best Use
Office B
$765.0K
$669.4K – $892.5K
NOI $53,550 @ 7.0% cap · market cap 6.80%
Second Best
Healthcare Medical
$744.5K
$651.4K – $868.6K
NOI $52,114 @ 7.0% cap · market cap 6.62%
Theoretical Best
Office A
$913.9K
$799.7K – $1.07M
NOI $63,974 @ 7.0% cap · market cap 8.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
443
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08873, NJ
55,500
Population
22,142
Households
2.5
Avg Household Size
42
Median Age
54%
College-Educated
93%
High-School Grad
32.1 sq mi
ZIP Area
1,729
Density / Sq Mi
$117,866
Median Household Income
$61,727
Median Earnings
$1,942
Median Rent
$438,600
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Configured for clinical use with plumbing, laboratory space, separate entrances, and ADA-compliant restrooms.
Where is this medical office space located?
The property is located at 1553 Route 27 Franklin, NJ.
What is the asking price?
The asking price for this property is $787,500.
What are key features of this property?
This property features: 3,500 SF medical office with 6 plumbing‑equipped exam rooms; 3 consultation rooms plus a private physician office; Separate private physician and patient entrances
