High-End Freestanding Office
For Sale
$942,500
1125 N Delany Road, Gurnee, IL 60031
Class A office building in Gurnee, Illinois for sale.
Property Size4,180 SF
Lot Size0.30 Acres
Price / SF$225.48
Days on Market698
Property Features for 1125 N Delany Road
General Information
Standard status
Active
Size
4,180 SF
Lot size
0.30 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$14,881
Building Details
Year Built
2001
Listing Agency:
@properties Commercial
(847) 977-5389
Listed By:
Michael Levin · License #475123263
(847) 977-5389
Source:
Exitrealty
Added: Sep 14, 2024
Changed: Aug 8
Last Checked: Aug 8 at 5:25AM
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 @properties Commercial
Investment Insights
Based on property information with market context.
This freestanding Class A professional office building is located in Gurnee, Illinois. The newer-construction commercial property features O1 Zoning, Restricted Office District, premium build quality, and a functional design. The two-level building has a total area of 4180 square feet and is situated on a 0.30-acre (13,068 square feet) land site. The first floor includes an open reception area and foyer, six offices or treatment rooms, two ADA-compliant bathrooms, a Concord elevator/lift, two utility rooms, and two storage rooms. The furnaces have Respicaire Oxy 4 Plasma Air Scrubbers, installed in 2020. The upper level features open rooms with high ceilings, a large conference room/special event area with north-facing windows, and a full kitchen with a wet bar/serving bar. Many offices have large windows, high ceilings, and a wide-open interior space. The building has excellent road access, located just south of the intersection of Route 41 and Delany Road, with traffic volumes of 30,500 vehicles per day on Route 41 and 5,100 vehicles per day on Delany Road. It offers easy access to the Gurnee Business District and the north/south highway corridor between Chicago and Milwaukee, WI. The building utilizes a 200+ amp electric system and has a large parking lot for 15 cars. The building is wired for music in all six of the first-floor offices, with individual controls for the level of sound. A new roof was installed in 2023. The property is fully landscaped. Ideal for professional or medical use, the property is suitable for a variety of commercial uses, including medspa, hospice care, medical center, surgical center, dental, podiatry, law firm, insurance, technology, financial trading, or accounting office. The building can be reverted to four equal-sized units with separate gas and electric accounts.
Key Highlights
- High‑end, freestanding Class A office building in a desirable Gurnee business corridor.
- Versatile O1 Zoning allows for a variety of professional or medical uses, or redevelopment potential.
- Premium build quality with high‑end office build‑out, high security, and home‑like design.
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
$60,544
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
6.42%
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%
$1,210,880
$1.2M
Cap Rate 7%
$864,914
$864.9K
Cap Rate 9%
$672,711
$672.7K
Market Conditions
NOI Build-Up for 4,180 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
$110.4K $26.40/SF
− Vacancy
−$9.4K −$2.26/SF
EGI
$100.9K $24.14/SF
− OpEx
−$40.4K −$9.66/SF
NOI
$60.5K $14.48/SF
Area
Lake County, IL
Vacancy
8.56%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$1,210,880
Cap Rate 7%
$864,914
Cap Rate 9%
$672,711
Alternative Uses
Best Use
Healthcare Medical
$864.9K
$756.8K – $1.01M
NOI $60,544 @ 7.0% cap · market cap 6.42%
Second Best
Office B
$823.4K
$720.4K – $960.6K
NOI $57,635 @ 7.0% cap · market cap 6.12%
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $101,021 @ 7.0% cap · market cap 10.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,007
Businesses Nearby
Explore this area
Business Placement
Demographics for 60031, IL
37,650
Population
14,796
Households
2.5
Avg Household Size
42
Median Age
54%
College-Educated
95%
High-School Grad
19.0 sq mi
ZIP Area
1,982
Density / Sq Mi
$114,008
Median Household Income
$56,770
Median Earnings
$1,601
Median Rent
$322,300
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 - Class A office building in Gurnee, Illinois for sale.
Where is this office building located?
The property is located at 1125 N Delany Road Gurnee, IL.
What is the asking price?
The asking price for this property is $942,500.
What are key features of this property?
This property features: High‑end, freestanding Class A office building in a desirable Gurnee business corridor.; Versatile O1 Zoning allows for a variety of professional or medical uses, or redevelopment potential.; Premium build quality with high‑end office build‑out, high security, and home‑like design.
