Four-Unit Office
For Sale
$850,000
312 Us Highway 206, Hillsborough, NJ 08844
Four-unit office building with one fully updated unit built out for a dental practice, offering a flexible multi-tenant setup.
Property Size4,976 SF
Days on Market65
Property Features for 312 Us Highway 206
General Information
Standard status
Active
Size
4,976 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$16,150
Building Details
Building Size
4,976 SF
Year Built
1980
Stories
4
Units
4
Tenancy
Multi
Listing Agency:
Re/Max Preferred Professionals
Listed By:
KEVIN A. COLLISON
(908) 685-0700
Source:
Elliman
Added: Jul 4
Changed: Aug 31
Last Checked: Sep 5 at 7:57AM
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 commercial building offers a versatile layout with four office spaces. One unit stands out as completely updated and fully built out for a dental practice. The building is described as solid and well-maintained, with no major structural or mechanical issues noted.
Located at 312 US Highway 206 in Hillsborough Twp., the property is positioned in a car-dependent area, with walkScore of 49 and bikeScore of 36 (somewhat bikeable). The configuration supports multiple uses across its suites, whether you’re looking to occupy one unit while leasing the others or managing a multi-tenant income stream.
A buyer can evaluate the remaining units for cosmetic updates and finish-out opportunities based on the intended tenant profile, while the updated dental-ready space provides an immediately functional option within the building’s overall mix.
Located at 312 US Highway 206 in Hillsborough Twp., the property is positioned in a car-dependent area, with walkScore of 49 and bikeScore of 36 (somewhat bikeable). The configuration supports multiple uses across its suites, whether you’re looking to occupy one unit while leasing the others or managing a multi-tenant income stream.
A buyer can evaluate the remaining units for cosmetic updates and finish-out opportunities based on the intended tenant profile, while the updated dental-ready space provides an immediately functional option within the building’s overall mix.
Key Highlights
- Four‑unit office/commercial building built in 1980
- One unit is fully updated and built out for a dental practice
- Multi‑tenant setup offers flexibility to occupy one unit and lease the others
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
Multi-tenant
Tenancy
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
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Frequently Asked Questions
What type of property is this?
Office units - Four-unit office building with one fully updated unit built out for a dental practice, offering a flexible multi-tenant setup.
Where is this office units located?
The property is located at 312 Us Highway 206 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/commercial building built in 1980; One unit is fully updated and built out for a dental practice; Multi‑tenant setup offers flexibility to occupy one unit and lease the others
