Barnegat Retail Investment
For Sale
$674,900
688 E Bay Avenue, Barnegat, NJ 08005
Established business with expansion potential in downtown Barnegat.
Property Size2,816 SF
Price / SF$239.67
Days on Market134
Property Features for 688 E Bay Avenue
General Information
Standard status
Active
Size
2,816 SF
Property subtype
Commercial
Building Details
Year Built
1920
Listing Agency:
Weichert Realtors-Ship Bottom
(609) 494-6000
Listed By:
Paul Metzger
(833) 740-1234
Source:
Actionplusrealty
Added: Apr 19
Changed: Aug 28
Last Checked: Aug 29 at 10:11AM
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 Weichert Realtors-Ship Bottom
Investment Insights
Based on property information with market context.
This commercial property, situated in a high-traffic area of downtown Barnegat, presents an investment opportunity. The property is currently operating as a well-established and successful business with a favorable long-term lease. The building itself is described as a classic structure and a part of Barnegat history. Town approvals are in place to expand into the rear yard, allowing for a covered gazebo to provide additional seating and entertaining space. The property's location offers close proximity to the public docks and bay beach. The property size is 2816 square feet. This property is for sale.
Key Highlights
- Well‑established, successful business with favorable long‑term lease in place provides immediate investment income.
- Prime location in a high‑traffic area of Downtown Barnegat, near public docks and bay beach.
- Town approvals in place for expansion, including a covered gazebo for additional seating and entertaining.
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
$40,194
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
5.96%
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%
$803,880
$803.9K
Cap Rate 7%
$574,200
$574.2K
Cap Rate 9%
$446,600
$446.6K
Market Conditions
NOI Build-Up for 2,816 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
$60.8K $21.60/SF
− Vacancy
−$3.4K −$1.21/SF
EGI
$57.4K $20.39/SF
− OpEx
−$17.2K −$6.12/SF
NOI
$40.2K $14.27/SF
Area
Ocean County, NJ
Vacancy
5.60%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$803,880
Cap Rate 7%
$574,200
Cap Rate 9%
$446,600
Alternative Uses
Best Use
Retail
$574.2K
$502.4K – $669.9K
NOI $40,194 @ 7.0% cap · market cap 5.96%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$735.3K
$643.4K – $857.9K
NOI $51,472 @ 7.0% cap · market cap 7.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
233
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08005, NJ
25,814
Population
11,671
Households
2.2
Avg Household Size
49
Median Age
34%
College-Educated
94%
High-School Grad
53.5 sq mi
ZIP Area
483
Density / Sq Mi
$92,548
Median Household Income
$47,209
Median Earnings
$1,949
Median Rent
$356,200
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - Established business with expansion potential in downtown Barnegat.
Where is this storefront property located?
The property is located at 688 E Bay Avenue Barnegat, NJ.
What is the asking price?
The asking price for this property is $674,900.
What are key features of this property?
This property features: Well‑established, successful business with favorable long‑term lease in place provides immediate investment income.; Prime location in a high‑traffic area of Downtown Barnegat, near public docks and bay beach.; Town approvals in place for expansion, including a covered gazebo for additional seating and entertaining.
