Route 23 Commercial
For Sale
$999,900
1856 State Rt 23, West Milford, NJ 07480
Modern 3,750 SF building on Route 23 for sale.
Property Size3,750 SF
Lot Size1.11 Acres
Price / SF$266.64
Days on Market189
Property Features for 1856 State Rt 23
General Information
Standard status
Active
Size
3,750 SF
Lot size
1.11 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$18,465
Amenities
Central air
Asphalt Shingle Roof
Assigned
Central Air Cooling
Forced Hot Air Heating
Building Details
Year Built
2019
Listing Agency:
RE/MAX PINNACLE
(908) 306-9600
Listed By:
STEWART DANIELS · License #0895636
Source:
Corcoran
Added: Feb 13
Changed: Aug 20
Last Checked: Aug 20 at 5:26AM
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 RE/MAX PINNACLE
Investment Insights
Based on property information with market context.
This is a prominent 3,750 square foot commercial building constructed in 2019. It is positioned directly on Route 23 within the Highway Commercial Zone, offering strong highway visibility and generous on-site parking. The flexible, open interior is suitable for retail, showroom, gallery, medical, or professional office use. The modern interior features high ceilings, recessed lighting, and large display windows. The clean, open layout can accommodate single occupant use or segmented professional suites. The building is suitable for owner occupants seeking strong brand exposure or investors targeting quality commercial tenancy. Located on the northbound side of Route 23, the site benefits from steady daily traffic counts and regional accessibility.
Key Highlights
- Prominent 3,750 sq ft commercial building on Route 23 with strong highway visibility.
- Built in 2019 with modern interior features: high ceilings, recessed lighting, large display windows, open layout.
- Highway Commercial Zone allows for retail, showroom, gallery, medical, or professional office use.
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
$57,375
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
5.74%
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%
$1,147,500
$1.1M
Cap Rate 7%
$819,643
$819.6K
Cap Rate 9%
$637,500
$637.5K
Market Conditions
NOI Build-Up for 3,750 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
$112.5K $30.00/SF
− Vacancy
−$36.0K −$9.60/SF
EGI
$76.5K $20.40/SF
− OpEx
−$19.1K −$5.10/SF
NOI
$57.4K $15.30/SF
Area
Passaic 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%
$1,147,500
Cap Rate 7%
$819,643
Cap Rate 9%
$637,500
Alternative Uses
Best Use
Office B
$819.6K
$717.2K – $956.3K
NOI $57,375 @ 7.0% cap · market cap 5.74%
Second Best
Retail
$764.6K
$669.1K – $892.1K
NOI $53,525 @ 7.0% cap · market cap 5.35%
Theoretical Best
Office A
$979.2K
$856.8K – $1.14M
NOI $68,544 @ 7.0% cap · market cap 6.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
54
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 07480, NJ
15,358
Population
6,239
Households
2.5
Avg Household Size
47
Median Age
40%
College-Educated
95%
High-School Grad
33.1 sq mi
ZIP Area
464
Density / Sq Mi
$114,056
Median Household Income
$59,619
Median Earnings
$1,433
Median Rent
$362,200
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?
Showroom - Modern 3,750 SF building on Route 23 for sale.
Where is this showroom located?
The property is located at 1856 State Rt 23 West Milford, NJ.
What is the asking price?
The asking price for this property is $999,900.
What are key features of this property?
This property features: Prominent 3,750 sq ft commercial building on Route 23 with strong highway visibility.; Built in 2019 with **modern interior features**: high ceilings, recessed lighting, large display windows, open layout.; Highway Commercial Zone allows for retail, showroom, gallery, medical, or professional office use.
