Two-Story Professional Office
For Sale
$399,000
12508 S Harlem Avenue, Palos Heights, IL 60463
Commercial Sale, Palos Heights, IL
Property Size2,500 SF
Lot Size0.02 Acres
Price / SF$159.60
Days on Market49
Property Features for 12508 S Harlem Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
OFFIC
Directions
On Harlem Ave just south of 125th St
Subdivision
Palos Heights
Standard status
Active
APN
23254250190000
Lot size
0.02 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
10317
Utilities
Utilities
Water Available
Cooling system
Central Air
Building Details
Year built
2000
Floors in Building
2
Number of units
1
Flooring type
Wood, Carpet, Tile
Building materials
Brick
Listing Agency:
Century 21 Circle · Century 21 Real Estate
(708) 361-0800
Listed By:
Mike McCatty · License #471002650
(708) 398-6400
Added: Jul 18
Changed: Sep 2
Last Checked: Sep 4 at 8:06PM
MLS# 12707045
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,500 SF brick office property, built in 2000, provides a two-level configuration suited to professional operations. The main floor includes a reception area, four private offices, a wet kitchenette, and a bathroom. Upstairs, an open work area is complemented by two private offices, a second wet kitchenette, and a full bathroom. Shared space between the floors supports independent use of each level, allowing an occupant to operate on one floor while leasing the other. Wood, tile, and carpet flooring are installed throughout, with central air conditioning and updated major mechanicals.
The property is located at 12508 S Harlem Avenue in Downtown Palos Heights, with approximately 28,000 vehicles passing daily. It offers sidewalk and rear-door access, ample parking, and two established businesses within the building. Zoning is OFFIC, and water is available.
The property is located at 12508 S Harlem Avenue in Downtown Palos Heights, with approximately 28,000 vehicles passing daily. It offers sidewalk and rear-door access, ample parking, and two established businesses within the building. Zoning is OFFIC, and water is available.
Key Highlights
- 2,500 SF office building on 0.02 acres
- Two floors with four main‑level offices and two upstairs offices
- Approximately 28,000 vehicles pass daily on S Harlem Avenue
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
$34,471
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
8.64%
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%
$689,420
$689.4K
Cap Rate 7%
$492,443
$492.4K
Cap Rate 9%
$383,011
$383.0K
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
$61.2K $24.48/SF
− Vacancy
−$15.2K −$6.10/SF
EGI
$46.0K $18.38/SF
− OpEx
−$11.5K −$4.60/SF
NOI
$34.5K $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%
$689,420
Cap Rate 7%
$492,443
Cap Rate 9%
$383,011
Alternative Uses
Best Use
Office B
$492.4K
$430.9K – $574.5K
NOI $34,471 @ 7.0% cap · market cap 8.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$863.1K
$755.3K – $1.01M
NOI $60,420 @ 7.0% cap · market cap 15.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
887
Businesses Nearby
Explore this area
Business Placement
Demographics for 60463, IL
14,048
Population
5,501
Households
2.6
Avg Household Size
52
Median Age
41%
College-Educated
97%
High-School Grad
5.3 sq mi
ZIP Area
2,651
Density / Sq Mi
$105,389
Median Household Income
$64,885
Median Earnings
$2,119
Median Rent
$343,700
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 - Flexible commercial layout with private offices, reception areas, wet kitchenettes, bathrooms, and separate floor functionality.
Where is this office building located?
The property is located at 12508 S Harlem Avenue Palos Heights, IL.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: 2,500 SF office building on 0.02 acres; Two floors with four main‑level offices and two upstairs offices; Approximately 28,000 vehicles pass daily on S Harlem Avenue
