Corner Office
For Sale
$398,000
12000 S harlem Avenue S, Palos Heights, IL 60465
Freestanding office property with central air and COMMR zoning near Route 83 and Harlem Avenue.
Property Size1,700 SF
Days on Market179
Property Features for 12000 S harlem Avenue S
General Information
Standard status
Active
Size
1,700 SF
Zoning
COMMR
Taxes and HOA fees
Annual Taxes
$19,461
Amenities
Central Air
Building Details
Building Size
1,700 SF
Year Built
1960
Stories
1
Listing Agency:
Coldwell Banker Realty
(708) 205-8703
Listed By:
Charles Groebe · License #475091121
(708) 205-8703
Source:
Evrealestate
Added: Mar 6
Changed: Aug 31
Last Checked: Aug 30 at 3:03PM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This office building was constructed in 1960 and includes central air conditioning. The property is positioned at the southwest corner of the intersection of Route 83 and Harlem Avenue, with the building located one block south along Harlem Avenue. COMMR zoning is in place for the property.
The building is in Cook County, in Palos Heights, Illinois, at 12000 S Harlem Avenue. Its corner positioning provides a clear location reference for office users and visitors accessing the property from the surrounding arterial roads.
The building is in Cook County, in Palos Heights, Illinois, at 12000 S Harlem Avenue. Its corner positioning provides a clear location reference for office users and visitors accessing the property from the surrounding arterial roads.
Key Highlights
- Office building constructed in 1960
- Central air conditioning
- COMMR zoning
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
$23,440
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
5.89%
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%
$468,800
$468.8K
Cap Rate 7%
$334,857
$334.9K
Cap Rate 9%
$260,444
$260.4K
Market Conditions
NOI Build-Up for 1,700 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
$41.6K $24.48/SF
− Vacancy
−$10.4K −$6.10/SF
EGI
$31.3K $18.38/SF
− OpEx
−$7.8K −$4.60/SF
NOI
$23.4K $13.79/SF
Area
Cook County, IL
Vacancy
24.90%
Lease Rate
$24.48 /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%
$468,800
Cap Rate 7%
$334,857
Cap Rate 9%
$260,444
Alternative Uses
Best Use
Office B
$334.9K
$293.0K – $390.7K
NOI $23,440 @ 7.0% cap · market cap 5.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$586.9K
$513.6K – $684.8K
NOI $41,085 @ 7.0% cap · market cap 10.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,084
Businesses Nearby
Explore this area
Business Placement
Demographics for 60465, IL
18,530
Population
7,885
Households
2.4
Avg Household Size
42
Median Age
25%
College-Educated
87%
High-School Grad
4.3 sq mi
ZIP Area
4,309
Density / Sq Mi
$83,969
Median Household Income
$50,990
Median Earnings
$1,267
Median Rent
$259,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Freestanding office property with central air and COMMR zoning near Route 83 and Harlem Avenue.
Where is this office building located?
The property is located at 12000 S harlem Avenue S Palos Heights, IL.
What is the asking price?
The asking price for this property is $398,000.
What are key features of this property?
This property features: Office building constructed in 1960; Central air conditioning; COMMR zoning
