Two-Story Restaurant Building with
For Sale
$2,000,000
226 Us 1 Highway, Edison, NJ 08817
Commercial Sale, Edison, NJ
Property Size8,700 SF
Lot Size0.44 Acres
Price / SF$229.89
Days on Market52
Property Features for 226 Us 1 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
GBH
Parking
23
Parking features
Offsite, Garage, On Street, Parking Lot
Lot features
Highway Commercial
Standard status
Active
APN
0500297010002503
Size
8,700 SF
Lot size
0.44 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
31044
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating)
Cooling system
Wall Unit(s), Central Air
Water source
Public
Building Details
Floors in Building
2
Flooring type
Marble, Wood
Building materials
Brick
Roof type
Asphalt
Listing Agency:
KELLER WILLIAMS CORNERSTONE
(908) 359-0893
Listed By:
Weiyan Lai
(908) 359-0893
Added: Jul 1
Changed: Aug 19
Last Checked: Aug 21 at 5:06AM
MLS# 2662419M
Copyright © 2026 All Jersey 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.
Two-story brick restaurant building with office space, plus additional business offerings. The property is described as having restaurant use alongside a bridal shop, barber shop, and massage spa, with offices included in the overall layout. The building totals about 8,700 SF, with a high-ceiling basement of about 4,000 SF. Interior finishes include marble and wood flooring. Heating is electric, and cooling includes wall unit(s) plus central air. The roof is asphalt.
Located at 226 US 1 Highway in Edison, NJ, the property is positioned for strong exposure on heavily traveled Route 1 North, with signage for visibility. Parking is available in a recently coated and striped lot, with 23 to 25 parking spaces, along with garage, on-street, and offsite parking options.
Public utilities include public water and public sewer. Zoning is GBH.
Located at 226 US 1 Highway in Edison, NJ, the property is positioned for strong exposure on heavily traveled Route 1 North, with signage for visibility. Parking is available in a recently coated and striped lot, with 23 to 25 parking spaces, along with garage, on-street, and offsite parking options.
Public utilities include public water and public sewer. Zoning is GBH.
Key Highlights
- About 8,700 SF two‑story restaurant building with about 4,000 SF high‑ceiling basement
- Brick construction with asphalt roof
- Zoned GBH
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
$142,115
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
7.11%
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%
$2,842,300
$2.8M
Cap Rate 7%
$2,030,214
$2.0M
Cap Rate 9%
$1,579,056
$1.6M
Market Conditions
NOI Build-Up for 8,700 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
$229.7K $26.40/SF
− Vacancy
−$40.2K −$4.62/SF
EGI
$189.5K $21.78/SF
− OpEx
−$47.4K −$5.44/SF
NOI
$142.1K $16.33/SF
Area
Edison, NJ
Vacancy
17.50%
Lease Rate
$26.40 /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%
$2,842,300
Cap Rate 7%
$2,030,214
Cap Rate 9%
$1,579,056
Alternative Uses
Best Use
Office B
$2.03M
$1.78M – $2.37M
NOI $142,115 @ 7.0% cap · market cap 7.11%
Second Best
Specialty Retail
$1.99M
$1.74M – $2.32M
NOI $139,100 @ 7.0% cap · market cap 6.96%
Theoretical Best
Office A
$2.82M
$2.47M – $3.29M
NOI $197,374 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
726
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08817, NJ
48,243
Population
17,260
Households
2.8
Avg Household Size
37
Median Age
49%
College-Educated
91%
High-School Grad
10.6 sq mi
ZIP Area
4,551
Density / Sq Mi
$109,734
Median Household Income
$54,631
Median Earnings
$1,946
Median Rent
$411,100
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Two-story restaurant building in zoning GBH with offices, basement space, and 23 to 25 parking spaces.
Where is this conventional restaurant located?
The property is located at 226 Us 1 Highway Edison, NJ.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: About 8,700 SF two‑story restaurant building with about 4,000 SF high‑ceiling basement; Brick construction with asphalt roof; Zoned GBH
