Prime Location Office
For Sale
$3,300,000
349 Us Highway 206, Hillsborough, NJ 08844
14,376 sq. ft. office building in prime location.
Property Size14,376 SF
Lot Size2.37 Acres
Price / SF$229.55
Days on Market538
Property Features for 349 Us Highway 206
General Information
Standard status
Active
Size
14,376 SF
Lot size
2.37 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$41,837
Amenities
Central air
Asphalt Shingle Roof
Corner
Cul-De-Sac
Level Lot
Multi-Zone Cooling
Multi-Zone Heating
Parking Lot-Shared
Building Details
Year Built
1979
Listing Agency:
K T REALTY
(908) 753-7511
Listed By:
KETAN THAKKER
Source:
Corcoran
Added: Feb 17, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:14AM
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 K T REALTY
Investment Insights
Based on property information with market context.
This 14,376 sq. ft. office building is situated in a prime location. The building contains 9 different offices, each equipped with its own HVAC system and separate electric meter. Water is supplied through a common meter. The property includes 62 parking spaces. Approximately half of the building features a basement. The surrounding area includes RWJ Medicor Cardiology, Lowes, Home Goods, WEIS, and Kohls.
Key Highlights
- 14,376 sq.ft Office Building in a Prime Location
- 9 Separate Offices, each with its own HVAC and Electric Meter
- Ample Parking with 62 Spots
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
$219,953
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
6.67%
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%
$4,399,060
$4.4M
Cap Rate 7%
$3,142,186
$3.1M
Cap Rate 9%
$2,443,922
$2.4M
Market Conditions
NOI Build-Up for 14,376 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
$431.3K $30.00/SF
− Vacancy
−$138.0K −$9.60/SF
EGI
$293.3K $20.40/SF
− OpEx
−$73.3K −$5.10/SF
NOI
$220.0K $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%
$4,399,060
Cap Rate 7%
$3,142,186
Cap Rate 9%
$2,443,922
Alternative Uses
Best Use
Office B
$3.14M
$2.75M – $3.67M
NOI $219,953 @ 7.0% cap · market cap 6.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.75M
$3.28M – $4.38M
NOI $262,770 @ 7.0% cap · market cap 7.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
528
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 building - 14,376 sq. ft. office building in prime location.
Where is this office building located?
The property is located at 349 Us Highway 206 Hillsborough, NJ.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: 14,376 sq.ft Office Building in a Prime Location; 9 Separate Offices, each with its own HVAC and Electric Meter; Ample Parking with 62 Spots
