Two-Story Professional Office
For Sale
$399,000
12508 S Harlem Ave Unit B, Palos Heights, IL 60463
Flexible office layout with private rooms, open workspace, separate kitchenettes, and bathrooms on both levels.
Property Size2,073 SF
Price / SF$192.47
Days on Market45
Property Features for 12508 S Harlem Ave Unit B
General Information
Standard status
Active
Size
2,073 SF
Property subtype
Commercial
Additional Details
Road Access
Yes
Building Details
Year Built
2000
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Century 21 Circle
(708) 945-2121
Listed By:
Mike McCatty · License #471002650
Source:
Illianahomesource
Added: Jul 16
Changed: Aug 28
Last Checked: Aug 29 at 10:28AM
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 Century 21 Circle
Investment Insights
Based on property information with market context.
This two-level office property is configured for professional operations, with a reception area, six private offices, and an open work area. Each floor includes a wet kitchenette and bathroom, while shared space supports separate use of the levels. Additional features include large windows in two offices, skylights in an upper-level office, and rear access to a sidewalk and grassy area. Major mechanical systems have been updated and professionally serviced.
The building is located in Downtown Palos Heights along Harlem Avenue, where approximately 28,000 vehicles pass daily. The surrounding area includes dining, shopping, and local amenities, and the property provides ample parking. Two established businesses are located within the building, and the floor plan supports an owner-user arrangement with potential rental income from the other level.
The building is located in Downtown Palos Heights along Harlem Avenue, where approximately 28,000 vehicles pass daily. The surrounding area includes dining, shopping, and local amenities, and the property provides ample parking. Two established businesses are located within the building, and the floor plan supports an owner-user arrangement with potential rental income from the other level.
Key Highlights
- Two‑level office building with reception, six private offices, and open work area
- Wet kitchenette and bathroom provided on each floor
- Approximately 28,000 vehicles pass daily on 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
$28,583
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
7.16%
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%
$571,660
$571.7K
Cap Rate 7%
$408,329
$408.3K
Cap Rate 9%
$317,589
$317.6K
Market Conditions
NOI Build-Up for 2,073 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
$50.7K $24.48/SF
− Vacancy
−$12.6K −$6.10/SF
EGI
$38.1K $18.38/SF
− OpEx
−$9.5K −$4.60/SF
NOI
$28.6K $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%
$571,660
Cap Rate 7%
$408,329
Cap Rate 9%
$317,589
Alternative Uses
Best Use
Office B
$408.3K
$357.3K – $476.4K
NOI $28,583 @ 7.0% cap · market cap 7.16%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$715.7K
$626.3K – $835.0K
NOI $50,100 @ 7.0% cap · market cap 12.56%
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 office layout with private rooms, open workspace, separate kitchenettes, and bathrooms on both levels.
Where is this office building located?
The property is located at 12508 S Harlem Ave Unit B 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: Two‑level office building with reception, six private offices, and open work area; Wet kitchenette and bathroom provided on each floor; Approximately 28,000 vehicles pass daily on Harlem Avenue
