Updated Medical Office End
For Sale
$300,000
8 Shunpike, Madison, NJ 07940
Updated medical office end unit near hospitals and major routes.
Property Size1,024 SF
Lot Size1.10 Acres
Price / SF$292.97
Days on Market153
Property Features for 8 Shunpike
General Information
Standard status
Active
Size
1,024 SF
Lot size
1.10 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$44,832
Building Details
Building Size
1,024 SF
Year Built
1964
Stories
2
Units
7
Listing Agency:
(908) 522-1800
Listed By:
CHRISTINE LAYNG
Source:
Elliman
Added: Mar 24
Changed: Aug 14
Last Checked: Aug 23 at 6:43AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CHRISTINE LAYNG
Investment Insights
Based on property information with market context.
This 1,024-square-foot medical office end unit, updated in 2025, features a reception/waiting area, reception office, three to four exam rooms, a private office, a kitchenette, a bathroom, and a closet with a door lock. It is intended for medical or dental use. The building is divided into seven units with a partnership agreement. A monthly fee of $1,792 covers maintenance, including trash and recycle removal, landscaping, and snow removal, as well as utilities such as heat, electric for common areas, water, sewer, and insurance. The central heating system consists of gas forced hot air with package air conditioning. The roof, new in 2021, is flat with a wood deck and tar covering. The property is conveniently located close to Morristown Memorial & Overlook Hospitals, shops, restaurants, and routes 24, 78, and 287.
Key Highlights
- Updated in 2025 medical office space.
- Close proximity to Morristown Memorial & Overlook Hospitals.
- Includes reception area, 3‑4 exam rooms, private office, kitchenette, and bathroom.
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
$15,667
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
5.22%
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%
$313,340
$313.3K
Cap Rate 7%
$223,814
$223.8K
Cap Rate 9%
$174,078
$174.1K
Market Conditions
NOI Build-Up for 1,024 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
$30.7K $30.00/SF
− Vacancy
−$9.8K −$9.60/SF
EGI
$20.9K $20.40/SF
− OpEx
−$5.2K −$5.10/SF
NOI
$15.7K $15.30/SF
Area
Morris 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%
$313,340
Cap Rate 7%
$223,814
Cap Rate 9%
$174,078
Alternative Uses
Best Use
Office B
$223.8K
$195.8K – $261.1K
NOI $15,667 @ 7.0% cap · market cap 5.22%
Second Best
Healthcare Medical
$217.8K
$190.6K – $254.1K
NOI $15,247 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$267.4K
$234.0K – $312.0K
NOI $18,717 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
366
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07940, NJ
18,403
Population
5,733
Households
3.2
Avg Household Size
34
Median Age
71%
College-Educated
97%
High-School Grad
4.9 sq mi
ZIP Area
3,756
Density / Sq Mi
$168,520
Median Household Income
$53,352
Median Earnings
$2,248
Median Rent
$883,200
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 - Updated medical office end unit near hospitals and major routes.
Where is this medical office space located?
The property is located at 8 Shunpike Madison, NJ.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Updated in 2025 medical office space.; Close proximity to Morristown Memorial & Overlook Hospitals.; Includes reception area, **3‑4 exam rooms, private office, kitchenette, and bathroom.**
