Freestanding Commercial Building For
For Sale
$420,000
Pending
988 Spruce St, Trenton, NJ 08648
2500 sq ft commercial building in thriving Lawrence Twp.
Property Size2,500 SF
Lot Size0.29 Acres
Days on Market302
Property Features for 988 Spruce St
General Information
Standard status
Pending
Size
2,500 SF
Lot size
0.29 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,526
Amenities
Highway
Level
Building Details
Year Built
1947
Listing Agency:
RE/MAX 1ST ADVANTAGE
(732) 382-0200
Listed By:
ROBERT DEKANSKI · License #232901
(732) 827-5344
Source:
Corcoran
Added: Nov 5, 2025
Changed: Aug 8
Last Checked: Jul 23 at 7:30AM
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 RE/MAX 1ST ADVANTAGE
Investment Insights
Based on property information with market context.
This freestanding commercial building offers an investment opportunity in Lawrence Township. The property, totaling 2500 sq ft, is situated on a busy highway location. Zoned HC, the building is currently used for light industrial and manufacturing purposes. The front workspace measures approximately 23'9x61, with an additional rear workspace of 23'7x39'3, and includes a private half bath. On-site parking is available, with room for trailers. The location provides convenient access to shopping, major roads, and public transit.
Key Highlights
- Freestanding 2500 sq ft commercial building
- High visibility location on a busy highway
- Zoned HC, suitable for light industrial and manufacturing
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
$21,172
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
5.04%
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%
$423,440
$423.4K
Cap Rate 7%
$302,457
$302.5K
Cap Rate 9%
$235,244
$235.2K
Market Conditions
NOI Build-Up for 2,500 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
$35.1K $14.04/SF
− Vacancy
−$2.5K −$1.01/SF
EGI
$32.6K $13.03/SF
− OpEx
−$11.4K −$4.56/SF
NOI
$21.2K $8.47/SF
Area
Mercer County, NJ
Vacancy
7.20%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
35.00%
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%
$423,440
Cap Rate 7%
$302,457
Cap Rate 9%
$235,244
Alternative Uses
Best Use
Industrial
$668.2K
$584.6K – $779.5K
NOI $46,771 @ 7.0% cap · market cap 11.14%
Second Best
Flex RnD
$302.5K
$264.7K – $352.9K
NOI $21,172 @ 7.0% cap · market cap 5.04%
Theoretical Best
Warehouse
$804.3K
$703.8K – $938.4K
NOI $56,304 @ 7.0% cap · market cap 13.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
997
Businesses Nearby
Explore this area
Business Placement
Demographics for 08648, NJ
31,955
Population
12,217
Households
2.6
Avg Household Size
40
Median Age
60%
College-Educated
92%
High-School Grad
16.7 sq mi
ZIP Area
1,913
Density / Sq Mi
$118,036
Median Household Income
$54,833
Median Earnings
$1,953
Median Rent
$395,400
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Manufacturing property - 2500 sq ft commercial building in thriving Lawrence Twp.
Where is this manufacturing property located?
The property is located at 988 Spruce St Trenton, NJ.
What is the asking price?
The asking price for this property is $420,000.
What are key features of this property?
This property features: Freestanding 2500 sq ft commercial building; High visibility location on a busy highway; Zoned HC, suitable for light industrial and manufacturing
