Medical/Business Space on Rand
For Sale
$850,000
280 N Rand Road, Lake Zurich, IL 60047
Well-maintained medical/office property near Good Shepherd Hospital.
Property Size5,000 SF
Price / SF$170
Days on Market1206
Property Features for 280 N Rand Road
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Commercial
Amenities
Central air
Central Air Cooling
Building Details
Year Built
1995
Listing Agency:
COMPASS
(847) 306-6158
Listed By:
WARD SCHELL
(847) 347-6387
Source:
Corcoran
Added: May 17, 2023
Changed: Sep 2
Last Checked: Sep 1 at 8:11PM
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 COMPASS
Investment Insights
Based on property information with market context.
This well-maintained medical or business space is located on a prime corridor with frontage on Rand Road (Route 22). The property, suitable for medical, dental, tech, or office use, is available for purchase. The north half of the approximately 5000 square foot property is plumbed and wired for a dental or medical practice, featuring four private restrooms, a reception area, private offices and/or examination rooms, a kitchenette, file rooms, and conference rooms. The adjoining south side of the building offers approximately 2500 square feet with one full and one half bath, large storage, a file room, two large offices, a reception desk, a conference room, and several workspaces. Ample parking is available to accommodate a large client, employee, or patient base. The property is near Good Shepherd Hospital, the Lake Zurich Commercial Corridor, Barrington, and Kildeer. It is move-in ready.
Key Highlights
- Prime location with frontage on Rand Rd (Rte 22).
- Plumbed and wired for medical/dental practice (north half).
- Two tenant spaces (north and south) for medical, dental, tech, or office use.
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
$68,942
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
8.11%
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%
$1,378,840
$1.4M
Cap Rate 7%
$984,886
$984.9K
Cap Rate 9%
$766,022
$766.0K
Market Conditions
NOI Build-Up for 5,000 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
$122.4K $24.48/SF
− Vacancy
−$30.5K −$6.10/SF
EGI
$91.9K $18.38/SF
− OpEx
−$23.0K −$4.60/SF
NOI
$68.9K $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%
$1,378,840
Cap Rate 7%
$984,886
Cap Rate 9%
$766,022
Alternative Uses
Best Use
Office B
$984.9K
$861.8K – $1.15M
NOI $68,942 @ 7.0% cap · market cap 8.11%
Second Best
Healthcare Medical
$946.3K
$828.0K – $1.10M
NOI $66,240 @ 7.0% cap · market cap 7.79%
Theoretical Best
Office A
$1.73M
$1.51M – $2.01M
NOI $120,839 @ 7.0% cap · market cap 14.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
465
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60047, IL
43,944
Population
15,877
Households
2.8
Avg Household Size
43
Median Age
67%
College-Educated
97%
High-School Grad
34.9 sq mi
ZIP Area
1,259
Density / Sq Mi
$173,043
Median Household Income
$82,803
Median Earnings
$1,817
Median Rent
$510,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Well-maintained medical/office property near Good Shepherd Hospital.
Where is this medical office space located?
The property is located at 280 N Rand Road Lake Zurich, IL.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Prime location with frontage on Rand Rd (Rte 22).; Plumbed and wired for medical/dental practice (north half).; Two tenant spaces (north and south) for medical, dental, tech, or office use.
