Calculate cap rates and net operating income for commercial properties in New Jersey. Compare your results against New Jersey's gateway market benchmarks sourced from CBRE H2 2025.
New Jersey is effectively part of the NYC gateway market. Jersey City and Hoboken offer Manhattan access with lower costs, driving exceptional multifamily demand. Central NJ (Edison, Parsippany) is a major pharmaceutical and corporate office hub. The Port of New York/New Jersey drives one of the most active industrial markets in the US — particularly the I-78/Turnpike corridor. High property taxes are a significant underwriting consideration.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.0% | 5.5% |
| Industrial | 4.5% | 6.0% |
| Retail | 5.0% | 7.0% |
| Office | 6.5% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
New Jersey cap rates range from 4.0–5.5% for multifamily, 4.5–6.0% for industrial (among the lowest outside gateway markets), 5.0–7.0% for retail, and 6.5–9.5% for office. The Port of NY/NJ drives exceptional industrial demand with some of the tightest industrial rates in the country.
New Jersey's industrial market benefits from the Port of New York/New Jersey (the busiest port on the East Coast), proximity to 28 million consumers within 100 miles, and access to the NY Metro area without city taxes. The Meadowlands, I-78, and Turnpike corridors host massive logistics facilities for Amazon, FedEx, UPS, and e-commerce operations, with some of the lowest vacancy rates and cap rates in the country.
New Jersey has among the highest property taxes in the US, with effective rates often exceeding 2% of assessed value annually. This significantly impacts NOI calculations for all property types and contributes to NJ office cap rates trading wider than comparable suburban NYC markets. Investors must carefully underwrite tax exposure as a core operating expense assumption.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.