Free-Standing Office
For Sale
$1,499,000
40 Broad Avenue, Palisades Park, NJ 07650
Free-standing office building with renovated systems and 7 on-site parking spaces, ready for immediate occupancy.
Property Size4,500 SF
Price / SF$333.11
Days on Market114
Property Features for 40 Broad Avenue
General Information
Standard status
Active
Size
4,500 SF
Total Parking Spaces
7
Property subtype
Retail
Amenities
Central Air
3
Building Details
Year Built
1990
Year Renovated
2018
Construction
solid construction
Listing Agency:
RE/MAX FORTUNE PROPERTIES
(201) 562-7300
Listed By:
Kenneth Koh
(201) 562-7300
Source:
Xome
Added: May 3
Changed: Aug 23
Last Checked: Aug 24 at 3:24AM
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 FORTUNE PROPERTIES
Investment Insights
Based on property information with market context.
This free-standing commercial office building was built in 1990 and offers approximately 4,500 square feet of versatile space arranged as 1,500 square feet per floor. The property has been comprehensively renovated top to bottom, with updated mechanical systems installed in 2018, including central A/C, heating, electrical, and windows. The building is described as ready for immediate occupancy.
The property is located at the premier intersection of Broad Ave and Route 46. It includes 7 dedicated on-site parking spaces.
With its two-floor configuration and recent major building-system updates, the space is well suited for continued office use by an owner-user or for purchase by an investor seeking a turnkey property.
The property is located at the premier intersection of Broad Ave and Route 46. It includes 7 dedicated on-site parking spaces.
With its two-floor configuration and recent major building-system updates, the space is well suited for continued office use by an owner-user or for purchase by an investor seeking a turnkey property.
Key Highlights
- Free‑standing commercial office building built in 1990, ready for immediate occupancy
- Approximately 4,500 sq. ft. total (1,500 sq. ft. per floor) with versatile space
- Comprehensive top‑to‑bottom renovation, with updated mechanical systems installed in 2018
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
$68,850
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
4.59%
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%
$1,377,000
$1.4M
Cap Rate 7%
$983,571
$983.6K
Cap Rate 9%
$765,000
$765.0K
Market Conditions
NOI Build-Up for 4,500 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
$135.0K $30.00/SF
− Vacancy
−$43.2K −$9.60/SF
EGI
$91.8K $20.40/SF
− OpEx
−$23.0K −$5.10/SF
NOI
$68.9K $15.30/SF
Area
Bergen 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%
$1,377,000
Cap Rate 7%
$983,571
Cap Rate 9%
$765,000
Alternative Uses
Best Use
Office B
$983.6K
$860.6K – $1.15M
NOI $68,850 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.18M
$1.03M – $1.37M
NOI $82,253 @ 7.0% cap · market cap 5.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,783
Businesses Nearby
Explore this area
Business Placement
Demographics for 07650, NJ
20,292
Population
7,612
Households
2.7
Avg Household Size
40
Median Age
54%
College-Educated
90%
High-School Grad
1.2 sq mi
ZIP Area
16,910
Density / Sq Mi
$101,295
Median Household Income
$50,817
Median Earnings
$1,976
Median Rent
$704,400
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 - Free-standing office building with renovated systems and 7 on-site parking spaces, ready for immediate occupancy.
Where is this office building located?
The property is located at 40 Broad Avenue Palisades Park, NJ.
What is the asking price?
The asking price for this property is $1,499,000.
What are key features of this property?
This property features: Free‑standing commercial office building built in 1990, ready for immediate occupancy; Approximately 4,500 sq. ft. total (1,500 sq. ft. per floor) with versatile space; Comprehensive top‑to‑bottom renovation, with updated mechanical systems installed in 2018
