End-Unit Medical Office
For Sale
$300,000
8 Shunpike Rd #4, Madison, NJ 07940
Configured for medical or dental practice with direct parking access and a dedicated reception and examination layout.
Property Size1,024 SF
Price / SF$292.97
Days on Market413
Property Features for 8 Shunpike Rd #4
General Information
Standard status
Active
Size
1,024 SF
Total Parking Spaces
60
Property subtype
Commercial
Zoning
Medical
Additional Details
HOA Fee
$1,792
Office Units
1
Building Details
Building Size
1,024 SF
Year Built
1964
Stories
2
Units
7
Tenancy
Multi
Listing Agency:
Kl Sotheby's Int'l. Realty
(908) 719-2500
Listed By:
Lidia S. Gabinelli · License #8437069
(908) 719-2500
Source:
Betterhomerealestate
Added: Jul 15, 2025
Changed: Aug 30
Last Checked: Aug 30 at 5:42PM
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 Kl Sotheby's Int'l. Realty
Investment Insights
Based on property information with market context.
Suite #4 is a bright end-unit medical office with 1,024 square feet of usable space and a layout designed for clinical operations. The interior includes a waiting room, reception area, three exam rooms, one private office, storage, a kitchenette, closet, and powder room. Medical or dental use is required, and the property is zoned Medical. Air conditioning is served by separate units.
The suite is part of a 10,000-square-foot building containing 7 units. Originally built in 1964, the building received a new roof in 2021. The property is located at 8 Shunpike Rd in Madison Boro, with access to nearby shops and restaurants as well as Rt. 78 and Rt. 287. Morristown Medical Center is 4.5 Miles away, and Overlook Medical Center is 5.4 Miles away.
The suite is part of a 10,000-square-foot building containing 7 units. Originally built in 1964, the building received a new roof in 2021. The property is located at 8 Shunpike Rd in Madison Boro, with access to nearby shops and restaurants as well as Rt. 78 and Rt. 287. Morristown Medical Center is 4.5 Miles away, and Overlook Medical Center is 5.4 Miles away.
Key Highlights
- 1,024 square foot end‑unit medical office, Suite #4
- Waiting room, reception, 3 exam rooms, private office, storage, kitchenette, closet, and powder room
- Medical zoning with required medical or dental use
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
5.22%
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 5.22%
Second Best
Healthcare Medical
$217.8K
$190.6K – $254.1K
NOI $15,247 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$267.4K
$234.0K – $312.0K
NOI $18,717 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
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 practice with direct parking access and a dedicated reception and examination layout.
Where is this medical office space located?
The property is located at 8 Shunpike Rd #4 Madison, NJ.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: 1,024 square foot end‑unit medical office, Suite #4; Waiting room, reception, 3 exam rooms, private office, storage, kitchenette, closet, and powder room; Medical zoning with required medical or dental use
