Building Details

Year Built 2016

Listing Agency: Coldwell Banker Commercial Dev

Listed By: Blake Pryor () · License #475159138 Show Phone

Source: Searchillinoishomesforsale

Added: Apr 13 Changed: Sep 2 Last Checked: Sep 4 at 7:44AM

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Investment Insights

Based on property information with market context.

Built in 2016 for the USDA, this 3,325-square-foot office property is configured for a single occupant and designed for efficient day-to-day operations. The interior includes an entry vestibule, open workspace with workstations, several private offices, a conference room, break room, IT/server room, and two ADA restrooms. The property is described as well-maintained and easy to manage.

Located at 103 Centre Dr in Petersburg, Illinois, the asset benefits from a lease extension running through February 2032. The lease extension was executed in March 2026, and the property carries an 8.65% cap rate.

Key Highlights

• 3,325‑square‑foot office building completed in 2016
• Built‑to‑suit facility occupied by the USDA
• Lease extension runs through February 2032

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

$43,810

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

4.00%

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%

$876,200 $876.2K

Cap Rate 7%

$625,857 $625.9K

Cap Rate 9%

$486,778 $486.8K

Market Conditions

NOI Build-Up for 3,325 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

$73.0K $21.96/SF

− Vacancy

−$14.6K −$4.39/SF

EGI

$58.4K $17.57/SF

− OpEx

−$14.6K −$4.39/SF

NOI

$43.8K $13.18/SF

Area

Menard County, IL

Vacancy

20.00%

Lease Rate

$21.96 /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%

$876,200

Cap Rate 7%

$625,857

Cap Rate 9%

$486,778

Alternative Uses

Best Use

Office B

$625.9K

$547.6K – $730.2K (±1% cap)

NOI $43,810 @ 7.0% cap · market cap 4.00%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$816.4K

$714.3K – $952.4K (±1% cap)

NOI $57,145 @ 7.0% cap · market cap 5.22%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Menard Soil & Water ... Environmental Consultant

Suggested Use

Top Pick Dental Office Auto Repair Shop Plumbing Service Real Estate Agency Storage Facility Kitchen & Bath Showroom

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

48

Businesses Nearby

Explore this area Business Placement

Demographics for 62675, IL

6,044

Population

2,812

Households

2.1

Avg Household Size

46

Median Age

29%

College-Educated

93%

High-School Grad

115.0 sq mi

ZIP Area

53

Density / Sq Mi

$78,327

Median Household Income

$45,465

Median Earnings

$686

Median Rent

$192,200

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this office buildings located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office building - Well-maintained government-leased office with private offices, collaborative workspace, and dedicated support areas.

Where is this office building located?

The property is located at 103 Centre Dr Petersburg, IL.

What is the asking price?

The asking price for this property is $1,095,000.

What are key features of this property?

This property features: 3,325‑square‑foot office building completed in 2016; Built‑to‑suit facility occupied by the USDA; Lease extension runs through February 2032