Flex Industrial Facility in
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275 CENTENNIAL AVE, Piscataway, NJ 08854
56,150 SF flex industrial facility with long-term net lease.
Property Size56,150 SF
Lot Size6.79 Acres
Price / SF$363.45
Days on Market83
Property Features for 275 CENTENNIAL AVE
General Information
Standard status
Active
Size
56,150 SF
Lot size
6.79 Acres
Property subtype
Industrial
Zoning
LI-5
Building Details
Year Built
1975
Listing Agency:
Northmarq - Chicago
(312) 777-2437
Listed By:
Isaiah Harf · License #IL 471019332
Source:
Crexi
Added: May 21
Changed: Aug 8
Last Checked: May 27 at 8:17AM
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 Northmarq - Chicago
Investment Insights
Based on property information with market context.
This 56,150 SF flex industrial facility is located in Piscataway, New Jersey, situated on a 6.79-acre parcel. The property is secured by a long-term net lease with over 17 years remaining and annual rental increases of $0.40 per square foot. Currently, the facility serves as a regional cable hub for Central New Jersey, housing critical network infrastructure. It features six bay doors, an utilized IOS area, over 300 parking spaces, and a satellite communications dish. These features contribute to strong operational reliance on the site.
Key Highlights
- Long‑term net lease with 17+ years remaining provides stable, predictable income.
- $0.40 PSF annual rental increases offer built‑in revenue growth.
- Critical network infrastructure tenant (Optimum) ensures strong operational reliance and reduces vacancy risk.
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
$816,113
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
4.00%
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%
$16,322,260
$16.3M
Cap Rate 7%
$11,658,757
$11.7M
Cap Rate 9%
$9,067,922
$9.1M
Market Conditions
NOI Build-Up for 56,150 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
$1.63M $29.04/SF
− Vacancy
−$375.0K −$6.68/SF
EGI
$1.26M $22.36/SF
− OpEx
−$439.4K −$7.83/SF
NOI
$816.1K $14.53/SF
Area
Middlesex County, NJ
Vacancy
23.00%
Lease Rate
$29.04 /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%
$16,322,260
Cap Rate 7%
$11,658,757
Cap Rate 9%
$9,067,922
Alternative Uses
Best Use
Flex RnD
$11.66M
$10.20M – $13.60M
NOI $816,113 @ 7.0% cap · market cap 4.00%
Second Best
Warehouse
$10.93M
$9.57M – $12.75M
NOI $765,293 @ 7.0% cap · market cap 3.75%
Theoretical Best
Office A
$14.66M
$12.83M – $17.11M
NOI $1,026,332 @ 7.0% cap · market cap 5.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
562
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08854, NJ
60,545
Population
18,069
Households
3.4
Avg Household Size
34
Median Age
50%
College-Educated
92%
High-School Grad
18.9 sq mi
ZIP Area
3,203
Density / Sq Mi
$126,331
Median Household Income
$42,397
Median Earnings
$1,929
Median Rent
$423,900
Median Home Value
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 - 56,150 SF flex industrial facility with long-term net lease.
Where is this flex space located?
The property is located at 275 CENTENNIAL AVE Piscataway, NJ.
What is the asking price?
The asking price for this property is $20,407,973.
What are key features of this property?
This property features: Long‑term net lease with 17+ years remaining provides stable, predictable income.; $0.40 PSF annual rental increases offer built‑in revenue growth.; Critical network infrastructure tenant (Optimum) ensures strong operational reliance and reduces vacancy risk.
