4-Unit Office
For Sale
$850,000
312 Us Highway 206 #1-4, Hillsborough, NJ 08844
Includes a fully built-out dental suite alongside three additional commercial units.
Property Size4,976 SF
Days on Market63
Property Features for 312 Us Highway 206 #1-4
General Information
Standard status
Active
Size
4,976 SF
Property subtype
Commercial
Zoning
HS
Property Condition
Severity
Repairs Needed
Evidence
cosmetic updates
Additional Details
Office Units
4
Building Details
Building Size
4,976 SF
Year Built
1980
Stories
4
Units
4
Listing Agency:
Re/Max Preferred Professionals
(908) 685-0700
Listed By:
Kevin A. Collison
Source:
Betterhomerealestate
Added: Jun 30
Changed: Aug 30
Last Checked: Aug 30 at 11:28PM
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 Re/Max Preferred Professionals
Investment Insights
Based on property information with market context.
This four-unit office property was built in 1980 and includes one suite configured for a modern dental practice. That space has been completely updated and built out, while the remaining units provide additional commercial configurations within the building. The property is classified under HS zoning.
Located at 312 US Highway 206 in Hillsborough Township, New Jersey, the building offers a multi-unit office format suitable for an owner-user or multi-tenant occupancy. The existing dental build-out adds a specialized office component to the property, while the overall building provides four separate units for commercial use.
Located at 312 US Highway 206 in Hillsborough Township, New Jersey, the building offers a multi-unit office format suitable for an owner-user or multi-tenant occupancy. The existing dental build-out adds a specialized office component to the property, while the overall building provides four separate units for commercial use.
Key Highlights
- Four‑unit office building
- One suite fully updated and built out for a modern dental practice
- HS zoning
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
$76,133
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
8.96%
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%
$1,522,660
$1.5M
Cap Rate 7%
$1,087,614
$1.1M
Cap Rate 9%
$845,922
$845.9K
Market Conditions
NOI Build-Up for 4,976 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
$149.3K $30.00/SF
− Vacancy
−$47.8K −$9.60/SF
EGI
$101.5K $20.40/SF
− OpEx
−$25.4K −$5.10/SF
NOI
$76.1K $15.30/SF
Area
Somerset 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%
$1,522,660
Cap Rate 7%
$1,087,614
Cap Rate 9%
$845,922
Alternative Uses
Best Use
Office B
$1.09M
$951.7K – $1.27M
NOI $76,133 @ 7.0% cap · market cap 8.96%
Second Best
Healthcare Medical
$1.06M
$926.1K – $1.23M
NOI $74,091 @ 7.0% cap · market cap 8.72%
Theoretical Best
Office A
$1.30M
$1.14M – $1.52M
NOI $90,953 @ 7.0% cap · market cap 10.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Office units
Location Intelligence
Trade Area within ½ mile
480
Businesses Nearby
Explore this area
Business Placement
Demographics for 08844, NJ
43,333
Population
16,168
Households
2.7
Avg Household Size
42
Median Age
62%
College-Educated
96%
High-School Grad
55.2 sq mi
ZIP Area
785
Density / Sq Mi
$153,785
Median Household Income
$74,977
Median Earnings
$2,171
Median Rent
$537,300
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?
Office building - Includes a fully built-out dental suite alongside three additional commercial units.
Where is this office building located?
The property is located at 312 Us Highway 206 #1-4 Hillsborough, NJ.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Four‑unit office building; One suite fully updated and built out for a modern dental practice; HS zoning
