Two-Unit Brick Flex
For Sale
$699,900
506 ELIZABETH AVE Unit 506, Elizabeth, NJ 07206
Versatile commercial layout combines retail space, private offices, and shared areas for multiple business uses.
Property Size3,560 SF
Price / SF$194.42
Days on Market243
Property Features for 506 ELIZABETH AVE Unit 506
General Information
Standard status
Active
Size
3,560 SF
Property subtype
General Commercial
Additional Details
Office Units
2
Taxes and HOA fees
Annual Taxes
$12,394
Amenities
security system
Central Air
3
Fire Alarm
Flat
Commercial
1 Car.
40X100, 40X100
Handicapped Access. Central Business District.
Building Details
Year Built
1955
Buildings
1
Building Size
3,560 SF
Construction
brick
Tenancy
Multi
Listing Agency:
UNITED REAL ESTATE
(973) 807-8890
Listed By:
JOSE TRINIDAD
(973) 807-8890
Source:
Xome
Added: Dec 30, 2025
Changed: Aug 29
Last Checked: Aug 30 at 2:23PM
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 UNITED REAL ESTATE
Investment Insights
Based on property information with market context.
This two-unit brick flex property was built in 1955 and provides a practical mix of commercial spaces. The interior includes a front retail area, several private offices, and two sizable common areas with 11-foot ceilings. Two bathrooms, central air, a fire alarm, and a security system are also included.
Located at 506 Elizabeth Ave in Elizabeth, the property offers easement access to a rear parking lot. Handicapped access and a Central Business District setting add to the building’s functional profile. The configuration may accommodate an owner-user or investor seeking separate commercial areas within one building.
Located at 506 Elizabeth Ave in Elizabeth, the property offers easement access to a rear parking lot. Handicapped access and a Central Business District setting add to the building’s functional profile. The configuration may accommodate an owner-user or investor seeking separate commercial areas within one building.
Key Highlights
- Two‑unit brick commercial building constructed in 1955
- Two common areas with 11‑foot ceilings
- Front retail area plus multiple private offices
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
$64,152
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
9.17%
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%
$1,283,040
$1.3M
Cap Rate 7%
$916,457
$916.5K
Cap Rate 9%
$712,800
$712.8K
Market Conditions
NOI Build-Up for 3,600 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
$103.7K $28.80/SF
− Vacancy
−$18.1K −$5.04/SF
EGI
$85.5K $23.76/SF
− OpEx
−$21.4K −$5.94/SF
NOI
$64.2K $17.82/SF
Area
Elizabeth, NJ
Vacancy
17.50%
Lease Rate
$28.80 /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%
$1,283,040
Cap Rate 7%
$916,457
Cap Rate 9%
$712,800
Alternative Uses
Best Use
Office B
$916.5K
$801.9K – $1.07M
NOI $64,152 @ 7.0% cap · market cap 9.17%
Second Best
Retail
$711.5K
$622.6K – $830.1K
NOI $49,805 @ 7.0% cap · market cap 7.12%
Theoretical Best
Office A
$1.33M
$1.17M – $1.56M
NOI $93,340 @ 7.0% cap · market cap 13.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,725
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07206, NJ
30,982
Population
9,712
Households
3.2
Avg Household Size
31
Median Age
8%
College-Educated
64%
High-School Grad
1.8 sq mi
ZIP Area
17,212
Density / Sq Mi
$60,992
Median Household Income
$38,541
Median Earnings
$1,543
Median Rent
$339,200
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?
Flex space - Versatile commercial layout combines retail space, private offices, and shared areas for multiple business uses.
Where is this flex space located?
The property is located at 506 ELIZABETH AVE Unit 506 Elizabeth, NJ.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Two‑unit brick commercial building constructed in 1955; Two common areas with 11‑foot ceilings; Front retail area plus multiple private offices
