Versatile Office/Residential
For Sale
Contact for pricing
655 Rahway Avenue, Woodbridge, NJ 07095
Office or residential use in residential area.
Property Size1,272 SF
Lot Size0.43 Acres
Price / SF$376.97
Days on Market718
Property Features for 655 Rahway Avenue
General Information
Standard status
Active
Size
1,272 SF
Total Parking Spaces
10
Lot size
0.43 Acres
Property subtype
Land, Office
Building Details
Year Built
1950
Stories
2
Listing Agency:
HOWARD HANNA RAND REALTY
(973) 694-6500
Listed By:
Jose Perez
Source:
Crexi
Added: Aug 22, 2024
Changed: Aug 8
Last Checked: Aug 8 at 11:39AM
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 HOWARD HANNA RAND REALTY
Investment Insights
Based on property information with market context.
This property, previously used as a real estate office, offers versatility for either office or residential use. It is located in a residential area but is grandfathered in for office use, allowing it to remain as an office. The layout includes a welcoming or waiting area and four separate offices, with two located downstairs and two upstairs. A full, unfinished basement provides potential for storage or additional space. The property sits on a large lot measuring 60 feet by 308 feet, offering ample outdoor area. The property size is 1272 square feet.
Key Highlights
- Grandfathered commercial use in a residential zone allows for continued office operation.
- Versatile property suitable for either office or residential use.
- Four separate offices (two upstairs, two downstairs).
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
$19,462
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
4.06%
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%
$389,240
$389.2K
Cap Rate 7%
$278,029
$278.0K
Cap Rate 9%
$216,244
$216.2K
Market Conditions
NOI Build-Up for 1,272 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
$38.2K $30.00/SF
− Vacancy
−$12.2K −$9.60/SF
EGI
$25.9K $20.40/SF
− OpEx
−$6.5K −$5.10/SF
NOI
$19.5K $15.30/SF
Area
Middlesex 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%
$389,240
Cap Rate 7%
$278,029
Cap Rate 9%
$216,244
Alternative Uses
Best Use
Office B
$278.0K
$243.3K – $324.4K
NOI $19,462 @ 7.0% cap · market cap 4.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$332.1K
$290.6K – $387.5K
NOI $23,250 @ 7.0% cap · market cap 4.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,231
Businesses Nearby
Explore this area
Business Placement
Demographics for 07095, NJ
19,839
Population
8,132
Households
2.4
Avg Household Size
39
Median Age
34%
College-Educated
92%
High-School Grad
4.6 sq mi
ZIP Area
4,313
Density / Sq Mi
$99,718
Median Household Income
$56,988
Median Earnings
$2,077
Median Rent
$361,200
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 units - Office or residential use in residential area.
Where is this office units located?
The property is located at 655 Rahway Avenue Woodbridge, NJ.
What is the asking price?
The asking price for this property is $479,500.
What are key features of this property?
This property features: Grandfathered commercial use in a residential zone allows for continued office operation.; Versatile property suitable for either office or residential use.; Four separate offices (two upstairs, two downstairs).
