Princeton Office/Medical Space
For Sale
Contact for pricing
707 Alexander Rd, Princeton, NJ 08540
Office and medical space for sale near Princeton University.
Property Size24,168 SF
Price / SF$165.04
Days on Market1235
Property Features for 707 Alexander Rd
General Information
Standard status
Active
Size
24,168 SF
Class
B
Property subtype
Office
Lease Type
Gross
Building Details
Year Renovated
2020
Buildings
2
Units
3
Tenancy
Multi
Listing Agency:
Fennelly Associates, Inc
Listed By:
Jerry Fennelly · License #NJ 8131550
Source:
Crexi
Added: Apr 5, 2023
Changed: Aug 21
Last Checked: Aug 21 at 12:23PM
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 Fennelly Associates, Inc
Investment Insights
Based on property information with market context.
Office and medical space is available for sale. Building 2 offers 3,080 square feet. Building 3, Unit 1 provides 17,500 square feet, and Unit 2 provides 3,588 square feet, with the possibility of contiguous use. The ceiling height features a drop ceiling at 9 feet 6 inches and a deck height of 17 feet. Parking is available at a ratio of 4 cars per 1,000 square feet. The space includes large bathrooms, multiple exits, and separate HVAC systems. It is equipped with heavy power, offering 1200 Amps. The property is located across the street from the Princeton Hyatt and is walkable to the Princeton Junction Train Station on the NEC Corridor. It is also situated one mile from Princeton University, with easy access to the New Jersey Turnpike, I-95, and Route 1.
Key Highlights
- Walkable to Princeton Junction Train Station (NEC Corridor)
- Easy access to NJ Turnpike, I‑95 & Rt. 1
- Across the Street from Princeton Hyatt
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
$335,602
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
8.41%
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%
$6,712,040
$6.7M
Cap Rate 7%
$4,794,314
$4.8M
Cap Rate 9%
$3,728,911
$3.7M
Market Conditions
NOI Build-Up for 24,168 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
$713.4K $29.52/SF
− Vacancy
−$154.1K −$6.38/SF
EGI
$559.3K $23.14/SF
− OpEx
−$223.7K −$9.26/SF
NOI
$335.6K $13.89/SF
Area
Mercer County, NJ
Vacancy
21.60%
Lease Rate
$29.52 /SF/Yr
Expense Ratio
40.00%
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%
$6,712,040
Cap Rate 7%
$4,794,314
Cap Rate 9%
$3,728,911
Alternative Uses
Best Use
Healthcare Medical
$4.79M
$4.20M – $5.59M
NOI $335,602 @ 7.0% cap · market cap 8.41%
Second Best
Office B
$3.10M
$2.71M – $3.61M
NOI $216,816 @ 7.0% cap · market cap 5.44%
Theoretical Best
Warehouse
$7.78M
$6.80M – $9.07M
NOI $544,302 @ 7.0% cap · market cap 13.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,413
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 08540, NJ
48,216
Population
19,255
Households
2.5
Avg Household Size
41
Median Age
82%
College-Educated
98%
High-School Grad
51.7 sq mi
ZIP Area
933
Density / Sq Mi
$169,898
Median Household Income
$80,357
Median Earnings
$2,083
Median Rent
$723,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Princeton Animal Hospital & Carnegie Cat Clinic — 726 Alexander Rd, Princeton, NJ 08540
Frequently Asked Questions
What type of property is this?
Medical Office Space - Office and medical space for sale near Princeton University.
Where is this medical office space located?
The property is located at 707 Alexander Rd Princeton, NJ.
What is the asking price?
The asking price for this property is $3,988,750.
What are key features of this property?
This property features: Walkable to Princeton Junction Train Station (NEC Corridor); Easy access to NJ Turnpike, I‑95 & Rt. 1; Across the Street from Princeton Hyatt
