Flex Space with Overhead
For Sale
$599,900
3542 North Milwaukee Avenue, Chicago, IL 60641
Office, conference, shop, and work areas support varied commercial layouts.
Property Size6,250 SF
Price / SF$95.98
Days on Market1803
Property Features for 3542 North Milwaukee Avenue
General Information
Standard status
Active
Size
6,250 SF
Zoning
COMMR
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Additional Details
Drive-In Doors
2
Taxes and HOA fees
Annual Taxes
$13,790
Building Details
Year Built
1978
Stories
1
Construction
cinder block
Listing Agency:
Realtogy Co
Listed By:
Halina Kraszewski · License #475122640
(847) 204-8370
Source:
Compass
Added: Sep 29, 2021
Changed: Sep 3
Last Checked: Sep 4 at 4:51PM
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 Realtogy Co
Investment Insights
Based on property information with market context.
This 6,250-square-foot flex property is a 1978 cinder block building arranged with two offices, two bathrooms, a conference room, and open shop/work areas. Two overhead garage doors provide access from North Milwaukee Avenue and the alley. The property is being sold AS IS.
The offering includes two lots with separate pin numbers and separate retail addresses at 3542 and 3544 N. Milwaukee Ave. Together, the lots provide 50 feet of frontage. A gated backyard adds parking, while I-90 is approximately one mile away.
The configuration combines office functions with practical workspace and service access, making the building suitable for commercial users needing both administrative and operational areas.
The offering includes two lots with separate pin numbers and separate retail addresses at 3542 and 3544 N. Milwaukee Ave. Together, the lots provide 50 feet of frontage. A gated backyard adds parking, while I-90 is approximately one mile away.
The configuration combines office functions with practical workspace and service access, making the building suitable for commercial users needing both administrative and operational areas.
Key Highlights
- 6,250 SF cinder block flex building constructed in 1978
- Two lots with separate pin numbers and addresses at 3542 and 3544 N. Milwaukee Ave.
- 50 feet of combined frontage across two 25 feet lots
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
$39,193
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
6.53%
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%
$783,860
$783.9K
Cap Rate 7%
$559,900
$559.9K
Cap Rate 9%
$435,478
$435.5K
Market Conditions
NOI Build-Up for 6,250 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
$58.9K $9.43/SF
− Vacancy
−$2.9K −$0.47/SF
EGI
$56.0K $8.96/SF
− OpEx
−$16.8K −$2.69/SF
NOI
$39.2K $6.27/SF
Area
Chicago, IL
Vacancy
5.00%
Lease Rate
$9.43 /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%
$783,860
Cap Rate 7%
$559,900
Cap Rate 9%
$435,478
Alternative Uses
Best Use
Flex RnD
$1.03M
$901.9K – $1.20M
NOI $72,150 @ 7.0% cap · market cap 12.03%
Second Best
Industrial
$559.9K
$489.9K – $653.2K
NOI $39,193 @ 7.0% cap · market cap 6.53%
Theoretical Best
Office A
$2.95M
$2.58M – $3.44M
NOI $206,280 @ 7.0% cap · market cap 34.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,312
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60641, IL
69,354
Population
27,377
Households
2.5
Avg Household Size
37
Median Age
36%
College-Educated
85%
High-School Grad
4.0 sq mi
ZIP Area
17,339
Density / Sq Mi
$81,649
Median Household Income
$46,376
Median Earnings
$1,249
Median Rent
$373,200
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
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Similar Off Market Nearby
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- Sabroso Catering — 4026 N Milwaukee Ave, Chicago, IL 60641
Frequently Asked Questions
What type of property is this?
Flex space - Office, conference, shop, and work areas support varied commercial layouts.
Where is this flex space located?
The property is located at 3542 North Milwaukee Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $599,900.
What are key features of this property?
This property features: 6,250 SF cinder block flex building constructed in 1978; Two lots with separate pin numbers and addresses at 3542 and 3544 N. Milwaukee Ave.; 50 feet of combined frontage across two 25 feet lots
