O'Fallon Warehouse/Industrial Property For
For Sale
$1,300,000
1205 Paragon Drive, O Fallon, IL 62269
Warehouse/Industrial property available for sale in O'Fallon, Illinois.
Property Size16,380 SF
Days on Market99
Property Features for 1205 Paragon Drive
General Information
Standard status
Active
Size
16,380 SF
Property subtype
8/20/2026
Building Details
Building Size
16,380 SF
Listing Agency:
(314) 746-0384
Listed By:
Keith Ziercher
(314) 746-0384
Source:
Cushmanwakefield
Added: May 21
Changed: Aug 24
Last Checked: Aug 25 at 5:24AM
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 Keith Ziercher
Investment Insights
Based on property information with market context.
This commercial real estate offering features a warehouse/industrial property located in O'Fallon, Illinois. The property is suitable for warehouse and industrial use.
Key Highlights
- Warehouse/Industrial property
- Located in O'Fallon, Illinois
- Property available for sale
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
$105,320
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
8.10%
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%
$2,106,400
$2.1M
Cap Rate 7%
$1,504,571
$1.5M
Cap Rate 9%
$1,170,222
$1.2M
Market Conditions
NOI Build-Up for 16,380 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
$159.2K $9.72/SF
− Vacancy
−$8.8K −$0.53/SF
EGI
$150.5K $9.19/SF
− OpEx
−$45.1K −$2.76/SF
NOI
$105.3K $6.43/SF
Area
St. Clair County, IL
Vacancy
5.50%
Lease Rate
$9.72 /SF/Yr
Expense Ratio
30.00%
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%
$2,106,400
Cap Rate 7%
$1,504,571
Cap Rate 9%
$1,170,222
Alternative Uses
Best Use
Warehouse
$1.83M
$1.60M – $2.13M
NOI $127,888 @ 7.0% cap · market cap 9.84%
Second Best
Industrial
$1.50M
$1.32M – $1.76M
NOI $105,320 @ 7.0% cap · market cap 8.10%
Theoretical Best
Office A
$3.88M
$3.39M – $4.52M
NOI $271,441 @ 7.0% cap · market cap 20.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
235
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 62269, IL
36,068
Population
14,616
Households
2.5
Avg Household Size
38
Median Age
51%
College-Educated
97%
High-School Grad
29.8 sq mi
ZIP Area
1,210
Density / Sq Mi
$100,167
Median Household Income
$58,724
Median Earnings
$1,258
Median Rent
$274,200
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest 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?
Warehouse - Warehouse/Industrial property available for sale in O'Fallon, Illinois.
Where is this warehouse located?
The property is located at 1205 Paragon Drive O Fallon, IL.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Warehouse/Industrial property; Located in O'Fallon, Illinois; Property available for sale
