Updated End-Unit Medical
For Sale
$275,000
8 Shunpike #9, Madison, NJ 07940
Configured for medical or dental use with reception, exam rooms, private office, kitchenette, and bathroom.
Property Size1,024 SF
Price / SF$268.55
Days on Market164
Property Features for 8 Shunpike #9
General Information
Standard status
Active
Size
1,024 SF
Total Parking Spaces
50
Property subtype
Commercial
Zoning
Medical
Additional Details
HOA Fee
$1,792
Highway Access
Yes
Building Details
Building Size
1,024 SF
Year Built
1964
Year Renovated
2025
Stories
2
Units
7
Tenancy
Multi
Listing Agency:
Coldwell Banker Realty
(908) 522-1800
Listed By:
Christine Layng
Source:
Betterhomerealestate
Added: Mar 19
Changed: Aug 28
Last Checked: Aug 28 at 2:28PM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This 1,024-square-foot end-unit medical office was updated in 2025 and is arranged for medical or dental operations. The interior includes a reception and waiting area, reception office, 3-4 exam rooms, private office, kitchenette, bathroom, and a lockable closet. Central heating uses gas forced hot air with package air conditioning.
The property is located at 8 Shunpike #9 in Madison Boro, NJ, near Morristown Memorial and Overlook Hospitals, shops, and restaurants. Routes 24, 78, and 287 are also nearby. The building dates to 1964, contains 7 units under a partnership agreement, and has a flat roof with a wood deck and tar covering installed in 2021.
The property is located at 8 Shunpike #9 in Madison Boro, NJ, near Morristown Memorial and Overlook Hospitals, shops, and restaurants. Routes 24, 78, and 287 are also nearby. The building dates to 1964, contains 7 units under a partnership agreement, and has a flat roof with a wood deck and tar covering installed in 2021.
Key Highlights
- 1,024 SF end‑unit medical office
- Updated in 2025 with reception, waiting area, private office, kitchenette, and bathroom
- 3‑4 exam rooms plus a lockable closet
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
$15,667
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
5.70%
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%
$313,340
$313.3K
Cap Rate 7%
$223,814
$223.8K
Cap Rate 9%
$174,078
$174.1K
Market Conditions
NOI Build-Up for 1,024 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
$30.7K $30.00/SF
− Vacancy
−$9.8K −$9.60/SF
EGI
$20.9K $20.40/SF
− OpEx
−$5.2K −$5.10/SF
NOI
$15.7K $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%
$313,340
Cap Rate 7%
$223,814
Cap Rate 9%
$174,078
Alternative Uses
Best Use
Office B
$223.8K
$195.8K – $261.1K
NOI $15,667 @ 7.0% cap · market cap 5.70%
Second Best
Healthcare Medical
$217.8K
$190.6K – $254.1K
NOI $15,247 @ 7.0% cap · market cap 5.54%
Theoretical Best
Office A
$267.4K
$234.0K – $312.0K
NOI $18,717 @ 7.0% cap · market cap 6.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
366
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07940, NJ
18,403
Population
5,733
Households
3.2
Avg Household Size
34
Median Age
71%
College-Educated
97%
High-School Grad
4.9 sq mi
ZIP Area
3,756
Density / Sq Mi
$168,520
Median Household Income
$53,352
Median Earnings
$2,248
Median Rent
$883,200
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?
Medical Office Space - Configured for medical or dental use with reception, exam rooms, private office, kitchenette, and bathroom.
Where is this medical office space located?
The property is located at 8 Shunpike #9 Madison, NJ.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: 1,024 SF end‑unit medical office; Updated in 2025 with reception, waiting area, private office, kitchenette, and bathroom; 3‑4 exam rooms plus a lockable closet
