Industrial Building with Business
For Sale
$5,500,000
83 Walnut St, Montclair, NJ 07042
Existing industrial building with zoning that accommodates general business and light industrial activity.
Property Size2,600 SF
Price / SF$211.54
Days on Market17
Property Features for 83 Walnut St
General Information
Standard status
Active
Size
2,600 SF
Property subtype
Commercial Listing
Zoning
C-2
Taxes and HOA fees
Annual Taxes
$130,000
Building Details
Year Built
1925
Stories
1
Units
1
Building Size
2,600 SF
Listing Agency:
(973) 634-8853
Listed By:
Nicholas Real Estate · License #9701194
(973) 634-8853
Source:
Nicholasrealestate.idxbroker
Added: Aug 8
Changed: Aug 23
Last Checked: Aug 24 at 3:07AM
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 Nicholas Real Estate
Investment Insights
Based on property information with market context.
This industrial building contains 2600 Sq ft and dates to 1925. Its zoning supports general business and light industry, providing a commercial framework for a range of industrial-oriented operations.
The property is located at 83 Walnut St in Montclair Township, New Jersey. WalkScore is 92, while bikeScore is 49, indicating strong walk access and moderate bike accessibility.
The property is located at 83 Walnut St in Montclair Township, New Jersey. WalkScore is 92, while bikeScore is 49, indicating strong walk access and moderate bike accessibility.
Key Highlights
- 2600 Sq ft industrial building
- Zoned for general business and light industry
- Built in 1925
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
$297,933
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
5.42%
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%
$5,958,660
$6.0M
Cap Rate 7%
$4,256,186
$4.3M
Cap Rate 9%
$3,310,367
$3.3M
Market Conditions
NOI Build-Up for 26,000 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
$458.6K $17.64/SF
− Vacancy
−$33.0K −$1.27/SF
EGI
$425.6K $16.37/SF
− OpEx
−$127.7K −$4.91/SF
NOI
$297.9K $11.46/SF
Area
Essex County, NJ
Vacancy
7.20%
Lease Rate
$17.64 /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%
$5,958,660
Cap Rate 7%
$4,256,186
Cap Rate 9%
$3,310,367
Alternative Uses
Best Use
Industrial
$4.26M
$3.72M – $4.97M
NOI $297,933 @ 7.0% cap · market cap 5.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.79M
$5.94M – $7.92M
NOI $475,238 @ 7.0% cap · market cap 8.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,206
Businesses Nearby
Explore this area
Business Placement
Demographics for 07042, NJ
27,384
Population
11,682
Households
2.3
Avg Household Size
39
Median Age
67%
College-Educated
96%
High-School Grad
3.8 sq mi
ZIP Area
7,206
Density / Sq Mi
$127,083
Median Household Income
$75,856
Median Earnings
$2,017
Median Rent
$733,100
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Industrial property - Existing industrial building with zoning that accommodates general business and light industrial activity.
Where is this industrial property located?
The property is located at 83 Walnut St Montclair, NJ.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: 2600 Sq ft industrial building; Zoned for general business and light industry; Built in 1925
