Route 1 Commercial
For Sale
Contact for pricing
226 Us 1 Highway, Edison, NJ 08817
Highly visible mixed-use property on Route 1 with income potential.
Property Size8,700 SF
Price / SF$229.89
Days on Market871
Property Features for 226 Us 1 Highway
General Information
Standard status
Active
Size
8,700 SF
Total Parking Spaces
23
Property subtype
Retail, Office
Zoning
GBH
Building Details
Stories
2
Listing Agency:
KELLER WILLIAMS CORNERSTONE
Listed By:
WEIYAN LAI
Source:
Crexi
Added: Apr 4, 2024
Changed: Aug 8
Last Checked: Aug 22 at 6:32AM
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 CORNERSTONE
Investment Insights
Based on property information with market context.
This highly visible commercial property is located on heavily traveled Route 1 North. The two-story building accommodates a restaurant, bridal shop, barber shop, massage spa, and offices. The total area is around 8,700 square feet, with a high-ceiling basement of around 4,000 square feet. The property includes a recently coated and striped parking lot with 23-25 parking spaces. The annual gross income could be $186,720. The location offers excellent visibility and ample signage opportunities for exposure. The offices are suitable for professionals such as CPAs, attorneys, mortgage companies, insurance companies, title companies, and IT companies.
Key Highlights
- High visibility location on heavily traveled Route 1 North.
- Potential annual gross income of $186,720.
- Total of approximately 8,700 SF of commercial space.
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
$142,115
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
7.11%
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%
$2,842,300
$2.8M
Cap Rate 7%
$2,030,214
$2.0M
Cap Rate 9%
$1,579,056
$1.6M
Market Conditions
NOI Build-Up for 8,700 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
$229.7K $26.40/SF
− Vacancy
−$40.2K −$4.62/SF
EGI
$189.5K $21.78/SF
− OpEx
−$47.4K −$5.44/SF
NOI
$142.1K $16.33/SF
Area
Edison, NJ
Vacancy
17.50%
Lease Rate
$26.40 /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%
$2,842,300
Cap Rate 7%
$2,030,214
Cap Rate 9%
$1,579,056
Alternative Uses
Best Use
Office B
$2.03M
$1.78M – $2.37M
NOI $142,115 @ 7.0% cap · market cap 7.11%
Second Best
Specialty Retail
$1.99M
$1.74M – $2.32M
NOI $139,100 @ 7.0% cap · market cap 6.96%
Theoretical Best
Office A
$2.82M
$2.47M – $3.29M
NOI $197,374 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
928
Businesses Nearby
Explore this area
Business Placement
Demographics for 08817, NJ
48,243
Population
17,260
Households
2.8
Avg Household Size
37
Median Age
49%
College-Educated
91%
High-School Grad
10.6 sq mi
ZIP Area
4,551
Density / Sq Mi
$109,734
Median Household Income
$54,631
Median Earnings
$1,946
Median Rent
$411,100
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?
Mixed-use property - Highly visible mixed-use property on Route 1 with income potential.
Where is this mixed-use property located?
The property is located at 226 Us 1 Highway Edison, NJ.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: High visibility location on heavily traveled Route 1 North.; Potential annual gross income of $186,720.; Total of approximately 8,700 SF of commercial space.
