Two-Story Flex
New
For Sale
$429,900
2516 PENNINGTON ROAD, Pennington, NJ 08534
HBO-zoned property with multiple structures, warehouse capacity, and a separate workspace building.
Property Size2,400 SF
Price / SF$179.13
Days on Market6
Property Features for 2516 PENNINGTON ROAD
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Commercial
Zoning
HBO
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1935
Buildings
3
Stories
2
Listing Agency:
Corcoran Sawyer Smith - Princeton
(609) 737-1500
Listed By:
Robert J Lopez · License #RS381254
(609) 865-7483
Source:
Cummingsrealtors
Added: Sep 14
Changed: Sep 18
Last Checked: Sep 18 at 7:39AM
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 Corcoran Sawyer Smith - Princeton
Investment Insights
Based on property information with market context.
This flex space property includes a two-story main building with 1 full bath and approximately 2400SF. An additional 1800SF + warehouse provides substantial storage or operational area, while a third building offers separate workspace. The property has most recently been used for cold storage and previously operated as an antique shop.
Located on Route 31, the property is less than 1 mile from I-95 and minutes from the 31 Circle and the historic town of Pennington. It is zoned HBO (Highway Business Office), with a configuration that includes multiple buildings and distinct work areas.
Located on Route 31, the property is less than 1 mile from I-95 and minutes from the 31 Circle and the historic town of Pennington. It is zoned HBO (Highway Business Office), with a configuration that includes multiple buildings and distinct work areas.
Key Highlights
- Two‑story building with 1 full bath
- Approximately 2400SF main building
- Additional 1800SF + warehouse space
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
$20,325
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
4.73%
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%
$406,500
$406.5K
Cap Rate 7%
$290,357
$290.4K
Cap Rate 9%
$225,833
$225.8K
Market Conditions
NOI Build-Up for 2,400 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
$33.7K $14.04/SF
− Vacancy
−$2.4K −$1.01/SF
EGI
$31.3K $13.03/SF
− OpEx
−$10.9K −$4.56/SF
NOI
$20.3K $8.47/SF
Area
Mercer County, NJ
Vacancy
7.20%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
35.00%
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%
$406,500
Cap Rate 7%
$290,357
Cap Rate 9%
$225,833
Alternative Uses
Best Use
Warehouse
$772.2K
$675.7K – $900.9K
NOI $54,052 @ 7.0% cap · market cap 12.57%
Second Best
Industrial
$641.4K
$561.3K – $748.3K
NOI $44,900 @ 7.0% cap · market cap 10.44%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
328
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 08534, NJ
12,955
Population
5,107
Households
2.5
Avg Household Size
45
Median Age
72%
College-Educated
97%
High-School Grad
21.8 sq mi
ZIP Area
594
Density / Sq Mi
$180,491
Median Household Income
$94,154
Median Earnings
$2,106
Median Rent
$573,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - HBO-zoned property with multiple structures, warehouse capacity, and a separate workspace building.
Where is this flex space located?
The property is located at 2516 PENNINGTON ROAD Pennington, NJ.
What is the asking price?
The asking price for this property is $429,900.
What are key features of this property?
This property features: Two‑story building with 1 full bath; Approximately 2400SF main building; Additional 1800SF + warehouse space
