Medical Office Space For
For Sale
$1,790,000
Pending
198 North Avenue E, Cranford, NJ 07016
Three-unit medical office building with ample parking and potential.
Property Size5,352 SF
Lot Size0.56 Acres
Days on Market253
Property Features for 198 North Avenue E
General Information
Standard status
Pending
Size
5,352 SF
Lot size
0.56 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$28,800
Amenities
Open
Curbing
Forced Air Heating
Land Locked
Level
Multi-Lot Subdivision
On Site
Paver Block
Possible Subdivision
Subdividable
Vinyl Flooring
Wooded
Building Details
Year Built
1965
Listing Agency:
CROSSROADS REALTY, INC.
(732) 244-4900
Listed By:
KARYN C WEJNERT · License #0897112
Source:
Corcoran
Added: Nov 29, 2025
Changed: Aug 8
Last Checked: Apr 5 at 11:37PM
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 CROSSROADS REALTY, INC.
Investment Insights
Based on property information with market context.
This property features three units suitable for medical office use. The first floor upper unit includes a reception/desk area and four exam rooms, along with a bathroom. The first floor rear unit offers a reception/desk area, six exam rooms, two bathrooms, and a full shower room designed for handicapped accessibility. The rear side unit comprises a reception room/desk, seven exam rooms, a bathroom, and a kitchen. The interior has been renovated. The property includes ample parking and a large open lot. The building contains 5352 square feet.
Key Highlights
- Three separate units offer versatile usage possibilities.
- Redone interior provides a modern and updated space.
- Ample parking available for tenants and visitors.
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
$81,886
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
4.57%
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%
$1,637,720
$1.6M
Cap Rate 7%
$1,169,800
$1.2M
Cap Rate 9%
$909,844
$909.8K
Market Conditions
NOI Build-Up for 5,352 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
$160.6K $30.00/SF
− Vacancy
−$51.4K −$9.60/SF
EGI
$109.2K $20.40/SF
− OpEx
−$27.3K −$5.10/SF
NOI
$81.9K $15.30/SF
Area
Union 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%
$1,637,720
Cap Rate 7%
$1,169,800
Cap Rate 9%
$909,844
Alternative Uses
Best Use
Office B
$1.17M
$1.02M – $1.36M
NOI $81,886 @ 7.0% cap · market cap 4.57%
Second Best
Healthcare Medical
$1.14M
$996.1K – $1.33M
NOI $79,689 @ 7.0% cap · market cap 4.45%
Theoretical Best
Office A
$1.40M
$1.22M – $1.63M
NOI $97,826 @ 7.0% cap · market cap 5.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,658
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07016, NJ
23,827
Population
9,619
Households
2.5
Avg Household Size
42
Median Age
65%
College-Educated
97%
High-School Grad
4.7 sq mi
ZIP Area
5,070
Density / Sq Mi
$148,629
Median Household Income
$84,980
Median Earnings
$2,116
Median Rent
$635,800
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 - Three-unit medical office building with ample parking and potential.
Where is this medical office space located?
The property is located at 198 North Avenue E Cranford, NJ.
What is the asking price?
The asking price for this property is $1,790,000.
What are key features of this property?
This property features: Three separate units offer versatile usage possibilities.; Redone interior provides a modern and updated space.; Ample parking available for tenants and visitors.
