Multi-Level Medical Office
For Sale
$990,000
582 Franklin Ave, Nutley, NJ 07110
Commercial-zoned property with clinical treatment areas, private offices, reception, and rear parking.
Property Size3,056 SF
Price / SF$323.95
Days on Market22
Property Features for 582 Franklin Ave
General Information
Standard status
Active
Size
3,056 SF
Additional Details
Public Transit
Yes
Building Details
Year Built
1962
Buildings
1
Listing Agency:
REAL
(609) 902-0478
Listed By:
JANET LARRAIN
Source:
Luminancerealty
Added: Aug 8
Changed: Aug 27
Last Checked: Aug 28 at 12:44PM
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 REAL
Investment Insights
Based on property information with market context.
This 3,056 SF medical office building provides a multi-level configuration suited to clinical and professional operations. The interior includes a reception area, waiting room, sizable treatment rooms, private offices, and administrative space. The property is currently used as a rehabilitation facility and was built in 1962.
Located along Franklin Avenue in Nutley’s commercial corridor, the building has rear parking and direct exposure to the avenue. The property is near the ON3 campus, Hackensack Meridian School of Medicine, and major healthcare employers. NJ Transit access is available through the Delawanna and Passaic stations, with connectivity toward New York City.
Located along Franklin Avenue in Nutley’s commercial corridor, the building has rear parking and direct exposure to the avenue. The property is near the ON3 campus, Hackensack Meridian School of Medicine, and major healthcare employers. NJ Transit access is available through the Delawanna and Passaic stations, with connectivity toward New York City.
Key Highlights
- 3,056 SF medical office building on Franklin Avenue
- Multi‑level layout with reception, waiting, treatment, private office, and administrative areas
- Currently operating as a rehabilitation facility
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
$46,757
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
4.72%
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%
$935,140
$935.1K
Cap Rate 7%
$667,957
$668.0K
Cap Rate 9%
$519,522
$519.5K
Market Conditions
NOI Build-Up for 3,056 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
$91.7K $30.00/SF
− Vacancy
−$29.3K −$9.60/SF
EGI
$62.3K $20.40/SF
− OpEx
−$15.6K −$5.10/SF
NOI
$46.8K $15.30/SF
Area
Essex 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%
$935,140
Cap Rate 7%
$667,957
Cap Rate 9%
$519,522
Alternative Uses
Best Use
Office B
$668.0K
$584.5K – $779.3K
NOI $46,757 @ 7.0% cap · market cap 4.72%
Second Best
Healthcare Medical
$650.0K
$568.8K – $758.4K
NOI $45,503 @ 7.0% cap · market cap 4.60%
Theoretical Best
Office A
$798.0K
$698.2K – $931.0K
NOI $55,859 @ 7.0% cap · market cap 5.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,124
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07110, NJ
30,149
Population
11,981
Households
2.5
Avg Household Size
41
Median Age
50%
College-Educated
94%
High-School Grad
3.4 sq mi
ZIP Area
8,867
Density / Sq Mi
$115,215
Median Household Income
$67,621
Median Earnings
$1,698
Median Rent
$489,900
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 - Commercial-zoned property with clinical treatment areas, private offices, reception, and rear parking.
Where is this medical office space located?
The property is located at 582 Franklin Ave Nutley, NJ.
What is the asking price?
The asking price for this property is $990,000.
What are key features of this property?
This property features: 3,056 SF medical office building on Franklin Avenue; Multi‑level layout with reception, waiting, treatment, private office, and administrative areas; Currently operating as a rehabilitation facility
