Retail Building with
For Sale
Contact for pricing
1309 E 87th St, Chicago, IL
Retail building with parking, security features, and high visibility.
Property Size3,123 SF
Lot Size0.07 Acres
Price / SF$288.18
Days on Market279
Property Features for 1309 E 87th St
General Information
Standard status
Active
Size
3,123 SF
Lot size
0.07 Acres
Property subtype
RETAIL
Listing Agency:
Miller Chicago
(312) 513-8333
Listed By:
Andrea Miller · License #471016960
Source:
Moodyscre
Added: Nov 14, 2025
Changed: Jul 6
Last Checked: Aug 19 at 9:31AM
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 Miller Chicago
Investment Insights
Based on property information with market context.
The building includes 2 retail/commercial spaces with 5 parking spaces in the front, plus additional parking in the back. It features 4 bathrooms and 9 ft ceilings. Security features include exterior security gates and a vault room. The location offers high visibility with traffic counts of 14,800 vehicles per day. The building has a property size of 3,123 square feet.
Key Highlights
- High‑visibility location with traffic counts of 14,800 vehicles per day
- Building includes 2 retail / commercial spaces
- 5 parking spaces in front, plus additional parking in back
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
$43,206
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
4.80%
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%
$864,120
$864.1K
Cap Rate 7%
$617,229
$617.2K
Cap Rate 9%
$480,067
$480.1K
Market Conditions
NOI Build-Up for 3,123 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
$67.5K $21.60/SF
− Vacancy
−$5.7K −$1.84/SF
EGI
$61.7K $19.76/SF
− OpEx
−$18.5K −$5.93/SF
NOI
$43.2K $13.83/SF
Area
Chicago, IL
Vacancy
8.50%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$864,120
Cap Rate 7%
$617,229
Cap Rate 9%
$480,067
Alternative Uses
Best Use
Retail
$617.2K
$540.1K – $720.1K
NOI $43,206 @ 7.0% cap · market cap 4.80%
Second Best
Industrial
$279.8K
$244.8K – $326.4K
NOI $19,584 @ 7.0% cap · market cap 2.18%
Theoretical Best
Office A
$1.47M
$1.29M – $1.72M
NOI $103,074 @ 7.0% cap · market cap 11.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
980
Businesses Nearby
131k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 61%
Shops & Services 38%
Electronics 1%
McDonald's
Dining
26,645 visits/mo
0.1 miles
Wendy's
Dining
22,597 visits/mo
0.3 miles
Dollar Tree
Shops & Services
18,010 visits/mo
0.3 miles
Popeyes Louisiana Kitchen
Dining
11,728 visits/mo
0.3 miles
Citibank
Shops & Services
9,451 visits/mo
0.3 miles
Market
Vacancy Rate% for Retail in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail building with parking, security features, and high visibility.
Where is this retail space located?
The property is located at 1309 E 87th St Chicago, IL.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: High‑visibility location with traffic counts of 14,800 vehicles per day; Building includes 2 retail / commercial spaces; 5 parking spaces in front, plus additional parking in back
