Commercial Building with High
For Sale
$2,500,000
401 Us Highway 202, Raritan, NJ 08869
12,000 SF commercial building near Somerville Circle.
Property Size12,000 SF
Lot Size0.36 Acres
Price / SF$208.33
Days on Market166
Property Features for 401 Us Highway 202
General Information
Standard status
Active
Size
12,000 SF
Lot size
0.36 Acres
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$21,233
Building Details
Building Size
12,000 SF
Year Built
1950
Stories
2
Units
1
Listing Agency:
BHHS FOX & ROACH
(732) 469-1515
Listed By:
TIM DELUCCIA · License #8243435
Source:
Elliman
Added: Mar 10
Changed: Aug 14
Last Checked: Aug 22 at 11:53AM
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 BHHS FOX & ROACH
Investment Insights
Based on property information with market context.
This 12,000 square foot commercial building features six overhead doors, a tailboard, and a 2,000 square foot showroom/office area. It also includes storage areas, a high-capacity outside elevator/lift, and heavy power. The property benefits from high visibility due to its location near Somerville Circle, with building signage available. Over 50,000 vehicles pass the site daily. It is located in a B-3 zone and currently operates as a turnkey wood-working cabinet shop. Permitted uses include auto-related businesses, garages, equipment sales/rental, general business, retail, and plumbing/HVAC contractor shops.
Key Highlights
- 12,000 SF Commercial Building in High Visibility Location (50,000+ Vehicles Per Day)
- B‑3 Zone with Permitted Uses: Auto Related, Garage, Retail, Contractors Shop, etc.
- Six (6) Overhead Doors and Tailboard Loading
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
$180,049
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
7.20%
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%
$3,600,980
$3.6M
Cap Rate 7%
$2,572,129
$2.6M
Cap Rate 9%
$2,000,544
$2.0M
Market Conditions
NOI Build-Up for 12,000 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
$302.4K $25.20/SF
− Vacancy
−$25.4K −$2.12/SF
EGI
$277.0K $23.08/SF
− OpEx
−$96.9K −$8.08/SF
NOI
$180.0K $15.00/SF
Area
Somerset County, NJ
Vacancy
8.40%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
35.00%
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%
$3,600,980
Cap Rate 7%
$2,572,129
Cap Rate 9%
$2,000,544
Alternative Uses
Best Use
Flex RnD
$2.57M
$2.25M – $3.00M
NOI $180,049 @ 7.0% cap · market cap 7.20%
Second Best
Industrial
$1.92M
$1.68M – $2.24M
NOI $134,691 @ 7.0% cap · market cap 5.39%
Theoretical Best
Office A
$3.13M
$2.74M – $3.66M
NOI $219,341 @ 7.0% cap · market cap 8.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,077
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08869, NJ
7,835
Population
3,257
Households
2.4
Avg Household Size
39
Median Age
40%
College-Educated
90%
High-School Grad
2.0 sq mi
ZIP Area
3,918
Density / Sq Mi
$103,699
Median Household Income
$50,108
Median Earnings
$1,927
Median Rent
$449,200
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- CATERING SOLUTIONS — 18 W Somerset St, Bridgewater, NJ 08807
- Mangia Buono Caterers — 63 W Somerset St, Raritan, NJ 08869
- C & S Catering — 3 1st Ave, Raritan, NJ 08869
Frequently Asked Questions
What type of property is this?
Flex space - 12,000 SF commercial building near Somerville Circle.
Where is this flex space located?
The property is located at 401 Us Highway 202 Raritan, NJ.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 12,000 SF Commercial Building in High Visibility Location (50,000+ Vehicles Per Day); B‑3 Zone with Permitted Uses: Auto Related, Garage, Retail, Contractors Shop, etc.; Six (6) Overhead Doors and Tailboard Loading
