Boonton Commercial Property with
For Sale
$1,300,000
305 W Main St, Boonton, NJ 07005
Highly visible commercial property in Boonton's business district.
Property Size4,690 SF
Price / SF$277.19
Days on Market140
Property Features for 305 W Main St
General Information
Standard status
Active
Size
4,690 SF
Building Details
Year Built
1880
Listing Agency:
EXP REALTY, LLC
Listed By:
CLAUDIA PATTERSON
(973) 263-0400
Source:
Luminancerealty
Added: Apr 20
Changed: Sep 3
Last Checked: Sep 6 at 12:16PM
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 EXP REALTY, LLC
Investment Insights
Based on property information with market context.
This highly visible commercial property, situated in the heart of Boonton's business district within the supply-constrained Morris County submarket, offers 4,690 square feet of multi-level space. The property is currently 100% occupied and configured as two units, each with a separate entrance, providing flexibility for investors or future owner-users. The layout includes private offices, conference rooms, dedicated workspaces, and a kitchenette, making it suitable for a variety of professional uses. A significant advantage is the inclusion of 15 private on-site parking spaces. Zoning allows for medical, professional, retail, vocational, dog grooming, and service uses such as salons and spas, with the potential for mixed-use conversion subject to town approvals. The property presents an investment opportunity with in-place income at a 6.7% cap rate and low operating expenses supported by tenant reimbursements. There is clear rent growth potential, as rents have not increased in over three years. Recent capital improvements include a new fire suppression system scheduled for 2025, along with updated driveway and windows, minimizing near-term capital expenditures. The property is ideally located within walking distance to downtown Boonton, with access to shopping, restaurants, NYC transit, nearby medical offices, and a strong surrounding residential base.
Key Highlights
- High‑visibility commercial property in Boonton's business district with strong frontage and 15 private on‑site parking spaces.
- 100% occupied, multi‑level asset (4,690 SF) configured as two units with separate entrances, offering flexibility for investors or owner‑users.
- Zoning allows for a wide range of uses (medical, professional, retail, etc.) with potential for mixed‑use conversion.
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
$71,757
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
5.52%
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%
$1,435,140
$1.4M
Cap Rate 7%
$1,025,100
$1.0M
Cap Rate 9%
$797,300
$797.3K
Market Conditions
NOI Build-Up for 4,690 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
$140.7K $30.00/SF
− Vacancy
−$45.0K −$9.60/SF
EGI
$95.7K $20.40/SF
− OpEx
−$23.9K −$5.10/SF
NOI
$71.8K $15.30/SF
Area
Morris 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%
$1,435,140
Cap Rate 7%
$1,025,100
Cap Rate 9%
$797,300
Alternative Uses
Best Use
Office B
$1.03M
$897.0K – $1.20M
NOI $71,757 @ 7.0% cap · market cap 5.52%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.22M
$1.07M – $1.43M
NOI $85,726 @ 7.0% cap · market cap 6.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
62
Businesses Nearby
Explore this area
Business Placement
Demographics for 07005, NJ
15,985
Population
6,115
Households
2.6
Avg Household Size
43
Median Age
56%
College-Educated
96%
High-School Grad
18.3 sq mi
ZIP Area
873
Density / Sq Mi
$126,411
Median Household Income
$66,198
Median Earnings
$1,779
Median Rent
$565,900
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?
Office units - Highly visible commercial property in Boonton's business district.
Where is this office units located?
The property is located at 305 W Main St Boonton, NJ.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: High‑visibility commercial property in Boonton's business district with strong frontage and **15 private on‑site parking spaces**.; 100% occupied, multi‑level asset (4,690 SF) configured as two units with separate entrances, offering flexibility for investors or owner‑users.; Zoning allows for a wide range of uses (medical, professional, retail, etc.) with potential for mixed‑use conversion.
