Renovated Office Building with
New
For Sale
$3,750,000
906 Mount Kemble Ave, Morristown, NJ 07960
Main building combines private offices, conference rooms, open work areas, and glass walls.
Property Size7,761 SF
Price / SF$483.19
Days on Market5
Property Features for 906 Mount Kemble Ave
General Information
Standard status
Active
Size
7,761 SF
Total Parking Spaces
36
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
outdoor patio
full kitchen
server room
EV charging stations
restored original stone walls
Building Details
Year Built
1948
Year Renovated
2020
Buildings
2
Construction
heavy timber
Listing Agency:
Keller Williams Towne Square Real
(646) 469-7874
Listed By:
Alise Alden · License #251134
Source:
Srrealestategroup
Added: Aug 26
Changed: Aug 29
Last Checked: Aug 26 at 5:13AM
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 Keller Williams Towne Square Real
Investment Insights
Based on property information with market context.
The office property at 906 Mount Kemble Ave includes a 7,156-square-foot main building renovated in 2020 and a 605-square-foot secondary building. The primary structure offers a mix of private offices, conference rooms, open work areas, glass-walled rooms, a full kitchen with a custom island, four restrooms, and a dedicated air-conditioned server room. Interior details include exposed heavy timber beams, wood ceilings, black steel accents, architectural ductwork, and modern finishes. Restored original stone walls and Hardie board-and-batten siding add to the existing character, while a partial metal roof and outdoor patio support the building’s functional layout.
The property has frontage on Route 202 with direct access and includes 36 on-site parking spaces, including two EV charging stations. The secondary building, known as the Wagonhouse, is currently rented by Dominick's and remains in as-is condition. The property was built in 1948.
The property has frontage on Route 202 with direct access and includes 36 on-site parking spaces, including two EV charging stations. The secondary building, known as the Wagonhouse, is currently rented by Dominick's and remains in as-is condition. The property was built in 1948.
Key Highlights
- 7,156‑square‑foot main office building renovated in 2020
- 605‑square‑foot secondary building currently rented by Dominick's
- 36 on‑site parking spaces, including two EV charging stations
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
$118,743
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
3.17%
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%
$2,374,860
$2.4M
Cap Rate 7%
$1,696,329
$1.7M
Cap Rate 9%
$1,319,367
$1.3M
Market Conditions
NOI Build-Up for 7,761 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
$232.8K $30.00/SF
− Vacancy
−$74.5K −$9.60/SF
EGI
$158.3K $20.40/SF
− OpEx
−$39.6K −$5.10/SF
NOI
$118.7K $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%
$2,374,860
Cap Rate 7%
$1,696,329
Cap Rate 9%
$1,319,367
Alternative Uses
Best Use
Office B
$1.70M
$1.48M – $1.98M
NOI $118,743 @ 7.0% cap · market cap 3.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.03M
$1.77M – $2.36M
NOI $141,859 @ 7.0% cap · market cap 3.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
133
Businesses Nearby
Explore this area
Business Placement
Demographics for 07960, NJ
45,609
Population
18,978
Households
2.4
Avg Household Size
40
Median Age
68%
College-Educated
94%
High-School Grad
34.6 sq mi
ZIP Area
1,318
Density / Sq Mi
$149,462
Median Household Income
$75,266
Median Earnings
$2,173
Median Rent
$701,100
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?
Office building - Main building combines private offices, conference rooms, open work areas, and glass walls.
Where is this office building located?
The property is located at 906 Mount Kemble Ave Morristown, NJ.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: 7,156‑square‑foot main office building renovated in 2020; 605‑square‑foot secondary building currently rented by Dominick's; 36 on‑site parking spaces, including two EV charging stations
