Building Details

Building Size 600 SF

Year Built 1950

Listing Agency: BHHS GROSS AND JANSEN REALTORS k***@gmail.com Show Phone

Listed By: KEVIN COLMAN Show Phone

Source: Evrealestate

Added: Feb 4 Changed: Aug 23 Last Checked: Aug 26 at 6:07AM

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Investment Insights

Based on property information with market context.

Located in the rapidly expanding Town Center Zone of Vernon, this property offers significant exposure to local and visitor traffic. The 600-square-foot building has been recently renovated for office space. It is also suitable for conversion to retail sales or a food concept. The owner is open to considering lease options depending on the term and property use. Proposed building expansion engineering approvals are attached.

Key Highlights

• Central location with maximum exposure to local and visitor traffic.
• Located in Vernon's rapidly expanding Town Center Zone.
• Recently renovated for office space.

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

$8,419

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

2.88%

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%

$168,380 $168.4K

Cap Rate 7%

$120,271 $120.3K

Cap Rate 9%

$93,544 $93.5K

Market Conditions

NOI Build-Up for 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

$13.2K $21.96/SF

− Vacancy

−$2.0K −$3.25/SF

EGI

$11.2K $18.71/SF

− OpEx

−$2.8K −$4.68/SF

NOI

$8.4K $14.03/SF

Area

Camden County, NJ

Vacancy

14.80%

Lease Rate

$21.96 /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%

$168,380

Cap Rate 7%

$120,271

Cap Rate 9%

$93,544

Alternative Uses

Best Use

Office B

$120.3K

$105.2K – $140.3K (±1% cap)

NOI $8,419 @ 7.0% cap · market cap 2.88%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$152.1K

$133.1K – $177.5K (±1% cap)

NOI $10,649 @ 7.0% cap · market cap 3.65%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office Units

Suggested Use

Top Pick Law Firm HVAC Service Parking Lot & Garage Bakery Computer & Electronic Repair Skin Care Clinic

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

173

Businesses Nearby

Explore this area Business Placement

Demographics for 07462, NJ

6,670

Population

3,589

Households

1.9

Avg Household Size

43

Median Age

29%

College-Educated

97%

High-School Grad

17.0 sq mi

ZIP Area

392

Density / Sq Mi

$99,125

Median Household Income

$57,154

Median Earnings

$1,614

Median Rent

$252,600

Median Home Value

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this office units located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Office units - Commercial property in Vernon's Town Center Zone, suitable for various uses.

Where is this office units located?

The property is located at 542 County Route 515 Vernon, NJ.

What is the asking price?

The asking price for this property is $292,000.

What are key features of this property?

This property features: Central location with maximum exposure to local and visitor traffic.; Located in Vernon's rapidly expanding Town Center Zone.; Recently renovated for office space.