Main Street Corner
For Sale
Contact for pricing
560 Main St, Chatham, NJ
Premier location with redevelopment potential in Chatham Borough.
Property Size6,600 SF
Lot Size0.38 Acres
Price / SF$272.73
Days on Market503
Property Features for 560 Main St
General Information
Standard status
Active
Size
6,600 SF
Lot size
0.38 Acres
Property subtype
OFFICE
Listing Agency:
Newmark & Associates, Inc.
(973) 884-4444
Listed By:
Helene Elbaum
(201) 320-3430
Source:
Moodyscre
Added: Apr 30, 2025
Changed: Sep 10
Last Checked: Sep 13 at 9:27AM
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 Newmark & Associates, Inc.
Investment Insights
Based on property information with market context.
This property is located in a premier location on Main Street in Chatham Borough. Situated on a .38 acre corner lot, the building features new windows, HVAC, and a hot water heater. The B-1 zoning allows for office, retail, childcare, and medical uses. Monument signage is available. On-site parking is provided, in addition to street parking. The property offers potential for redevelopment with a residential component. It is located within walking distance to shopping and restaurants and near major highways. A tax appeal was granted in 2024, resulting in a $21,000 per year reduction. The property is suitable for a user or investor with potential rental income. The building size is 6,600 square feet.
Key Highlights
- 2024 Tax appeal GRANTED, saving $21K per year
- Premier Main Street Chatham Borough location
- B‑1 Zoning allows for office, retail, childcare, and medical uses
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
$100,980
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
5.61%
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%
$2,019,600
$2.0M
Cap Rate 7%
$1,442,571
$1.4M
Cap Rate 9%
$1,122,000
$1.1M
Market Conditions
NOI Build-Up for 6,600 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
$198.0K $30.00/SF
− Vacancy
−$63.4K −$9.60/SF
EGI
$134.6K $20.40/SF
− OpEx
−$33.7K −$5.10/SF
NOI
$101.0K $15.30/SF
Area
Morris 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%
$2,019,600
Cap Rate 7%
$1,442,571
Cap Rate 9%
$1,122,000
Alternative Uses
Best Use
Office B
$1.44M
$1.26M – $1.68M
NOI $100,980 @ 7.0% cap · market cap 5.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.72M
$1.51M – $2.01M
NOI $120,637 @ 7.0% cap · market cap 6.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
746
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Office building - Premier location with redevelopment potential in Chatham Borough.
Where is this office building located?
The property is located at 560 Main St Chatham, NJ.
What is the asking price?
The asking price for this property is $1,799,999.
What are key features of this property?
This property features: 2024 Tax appeal GRANTED, saving $21K per year; Premier Main Street Chatham Borough location; B‑1 Zoning allows for office, retail, childcare, and medical uses
