Retail Building with Warehouse
For Sale
$2,950,000
906 Us Highway 22, Somerville, NJ 08876
Freestanding retail building with warehouse in Somerset County, NJ.
Property Size10,857 SF
Lot Size0.70 Acres
Price / SF$271.71
Days on Market241
Property Features for 906 Us Highway 22
General Information
Standard status
Active
Size
10,857 SF
Lot size
0.70 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$37,553
Amenities
Central air
Blacktop Driveway
Central Air Cooling
Flat Roof
Hard Surface
Level Lot
Parking Lot-Exclusive
Building Details
Year Built
9999
Listing Agency:
BHHS FOX & ROACH
(732) 469-1515
Listed By:
TIM DELUCCIA · License #8243435
Source:
Corcoran
Added: Dec 11, 2025
Changed: Aug 8
Last Checked: Apr 5 at 8:23PM
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 BHHS FOX & ROACH
Investment Insights
Based on property information with market context.
This freestanding building offers 10,857 square feet of space, including over 3,000 square feet of retail or showroom area and over 7,000 square feet of warehouse space. The warehouse features 16-foot clear ceilings and two tailboard loading docks. Located in Somerset County, Central NJ, the property benefits from high visibility on Route 22 East, with pylon signage and a traffic count of 50,000 vehicles per day. Front and rear parking lots are available. This property is suitable for retailers or showrooms needing on-site warehouse facilities.
Key Highlights
- High‑visibility location on Route 22 East in Somerset County with 50,000 vehicles per day (VPD).
- Freestanding 10,857 SF building with both retail/showroom and warehouse space.
- Warehouse space of 7,000+ SF.**
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
$154,965
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
5.25%
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%
$3,099,300
$3.1M
Cap Rate 7%
$2,213,786
$2.2M
Cap Rate 9%
$1,721,833
$1.7M
Market Conditions
NOI Build-Up for 10,857 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
$234.5K $21.60/SF
− Vacancy
−$13.1K −$1.21/SF
EGI
$221.4K $20.39/SF
− OpEx
−$66.4K −$6.12/SF
NOI
$155.0K $14.27/SF
Area
Somerset County, NJ
Vacancy
5.60%
Lease Rate
$21.60 /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%
$3,099,300
Cap Rate 7%
$2,213,786
Cap Rate 9%
$1,721,833
Alternative Uses
Best Use
Retail
$2.21M
$1.94M – $2.58M
NOI $154,965 @ 7.0% cap · market cap 5.25%
Second Best
Warehouse
$2.11M
$1.85M – $2.47M
NOI $147,975 @ 7.0% cap · market cap 5.02%
Theoretical Best
Office A
$2.83M
$2.48M – $3.31M
NOI $198,449 @ 7.0% cap · market cap 6.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,172
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08876, NJ
22,849
Population
9,717
Households
2.4
Avg Household Size
40
Median Age
56%
College-Educated
94%
High-School Grad
16.0 sq mi
ZIP Area
1,428
Density / Sq Mi
$120,823
Median Household Income
$70,464
Median Earnings
$1,776
Median Rent
$468,400
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Showroom - Freestanding retail building with warehouse in Somerset County, NJ.
Where is this showroom located?
The property is located at 906 Us Highway 22 Somerville, NJ.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: High‑visibility location on Route 22 East in Somerset County with 50,000 vehicles per day (VPD).; Freestanding 10,857 SF building with both retail/showroom and warehouse space.; Warehouse space of 7,000+ SF.**
