Office Building with Finished
For Sale
$450,000
400 Us Highway 206 #400, Hillsborough, NJ 08844
Gateway A-zoned office property with flexible interior layout, private parking, and additional finished space below grade.
Property Size1,326 SF
Days on Market65
Property Features for 400 Us Highway 206 #400
General Information
Standard status
Active
Size
1,326 SF
Total Parking Spaces
10
Property subtype
Commercial
Zoning
Gateway A
Amenities
kitchen
full bathroom
recessed lighting
finished basement
updated half bath
PVC fencing
back shed
Building Details
Building Size
1,326 SF
Year Built
1956
Buildings
1
Stories
1
Units
1
Listing Agency:
Era Central Realty Group
(732) 462-8600
Listed By:
Roslyn Sibilia
(732) 462-8600
Source:
Betterhomerealestate
Added: Jun 26
Changed: Aug 28
Last Checked: Aug 28 at 10:42AM
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 Era Central Realty Group
Investment Insights
Based on property information with market context.
This office building includes 1,323 square feet on the main level, arranged with an open work area, reception space, three private offices, a kitchen, and a full bathroom. Two front entrances allow the reception area to be configured for separate office suites. Recessed lighting, laminate and tile flooring, and hardwood beneath the existing finishes provide flexibility for future updates.
The finished basement adds storage or office capacity and includes an updated half bath. Outside, the property has a private paved parking lot, PVC fencing, and a rear shed for exterior storage. The lot also provides room for a possible building expansion, subject to approvals. Gateway A zoning supports professional and commercial use, with the source information also identifying potential applicability for medical or dental practices, restaurants, retail, and service businesses. The property was built in 1956 and is located on US Highway 206 in Hillsborough Township, New Jersey.
The finished basement adds storage or office capacity and includes an updated half bath. Outside, the property has a private paved parking lot, PVC fencing, and a rear shed for exterior storage. The lot also provides room for a possible building expansion, subject to approvals. Gateway A zoning supports professional and commercial use, with the source information also identifying potential applicability for medical or dental practices, restaurants, retail, and service businesses. The property was built in 1956 and is located on US Highway 206 in Hillsborough Township, New Jersey.
Key Highlights
- 1,323 square feet of main‑level office space
- Finished basement with office or storage use and updated half bath
- Open work area, kitchen, three private offices, and full bathroom
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
$20,288
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
4.51%
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%
$405,760
$405.8K
Cap Rate 7%
$289,829
$289.8K
Cap Rate 9%
$225,422
$225.4K
Market Conditions
NOI Build-Up for 1,326 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
$39.8K $30.00/SF
− Vacancy
−$12.7K −$9.60/SF
EGI
$27.1K $20.40/SF
− OpEx
−$6.8K −$5.10/SF
NOI
$20.3K $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%
$405,760
Cap Rate 7%
$289,829
Cap Rate 9%
$225,422
Alternative Uses
Best Use
Office B
$289.8K
$253.6K – $338.1K
NOI $20,288 @ 7.0% cap · market cap 4.51%
Second Best
Healthcare Medical
$282.1K
$246.8K – $329.1K
NOI $19,744 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$346.2K
$303.0K – $404.0K
NOI $24,237 @ 7.0% cap · market cap 5.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
789
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 - Gateway A-zoned office property with flexible interior layout, private parking, and additional finished space below grade.
Where is this office building located?
The property is located at 400 Us Highway 206 #400 Hillsborough, NJ.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: 1,323 square feet of main‑level office space; Finished basement with office or storage use and updated half bath; Open work area, kitchen, three private offices, and full bathroom
