Fully Leased Office
For Sale
$875,000
1224 Centre West Drive, Springfield, IL 62704
Fully leased office building near Veterans Pkwy with a tenant mix including legal and dental professionals.
Property Size11,948 SF
Price / SF$350
Days on Market113
Property Features for 1224 Centre West Drive
General Information
Standard status
Active
Size
11,948 SF
Property subtype
Commercial
Zoning
OFF
Occupancy
100%
Lease Type
Gross
Taxes and HOA fees
Annual Taxes
$29,511
Building Details
Building Size
11,948 SF
Tenancy
Multi
Listing Agency:
The Real Estate Group, Inc.
(217) 787-7000
Listed By:
Jay Clark
(217) 725-3402
Source:
Craggsrealtors
Added: May 19
Changed: Sep 8
Last Checked: Sep 8 at 8:22AM
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 The Real Estate Group, Inc.
Investment Insights
Based on property information with market context.
This fully leased office building is suited for investors seeking an income-producing commercial property. The building is occupied by a tenant mix that includes a dentist, attorney, CPA, investment-related tenant, and therapist.
Located on the west side just off Veterans Pkwy, the property is described as being close to downtown Springfield.
The offering is positioned as an investor opportunity given the building’s current leased status and diversified professional tenant mix.
Located on the west side just off Veterans Pkwy, the property is described as being close to downtown Springfield.
The offering is positioned as an investor opportunity given the building’s current leased status and diversified professional tenant mix.
Key Highlights
- Fully leased office building
- Westside location just off Veterans Pkwy
- Tenant mix includes a dentist, attorneys, CPAs, investment professionals, and therapists
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
$32,940
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
3.76%
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%
$658,800
$658.8K
Cap Rate 7%
$470,571
$470.6K
Cap Rate 9%
$366,000
$366.0K
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
$54.9K $21.96/SF
− Vacancy
−$11.0K −$4.39/SF
EGI
$43.9K $17.57/SF
− OpEx
−$11.0K −$4.39/SF
NOI
$32.9K $13.18/SF
Area
Springfield, 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%
$658,800
Cap Rate 7%
$470,571
Cap Rate 9%
$366,000
Alternative Uses
Best Use
Office B
$470.6K
$411.8K – $549.0K
NOI $32,940 @ 7.0% cap · market cap 3.76%
Second Best
Healthcare Medical
$406.5K
$355.7K – $474.3K
NOI $28,458 @ 7.0% cap · market cap 3.25%
Theoretical Best
Office A
$613.8K
$537.1K – $716.1K
NOI $42,966 @ 7.0% cap · market cap 4.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,019
Businesses Nearby
Explore this area
Business Placement
Demographics for 62704, IL
39,157
Population
20,706
Households
1.9
Avg Household Size
40
Median Age
42%
College-Educated
95%
High-School Grad
12.2 sq mi
ZIP Area
3,210
Density / Sq Mi
$66,352
Median Household Income
$44,793
Median Earnings
$924
Median Rent
$166,900
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 - Fully leased office building near Veterans Pkwy with a tenant mix including legal and dental professionals.
Where is this office building located?
The property is located at 1224 Centre West Drive Springfield, IL.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Fully leased office building; Westside location just off Veterans Pkwy; Tenant mix includes a dentist, attorneys, CPAs, investment professionals, and therapists
