Flex Warehouse Office
For Sale
Contact for pricing
1438 West Lake Street, Chicago, IL 60607
Flex warehouse with office space, currently under a long-term lease with periodic renewal options.
Property Size8,000 SF
Price / SF$187.50
Days on Market116
Property Features for 1438 West Lake Street
General Information
Standard status
Active
Size
8,000 SF
Property subtype
Office, Industrial
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$105,000
Additional Details
Highway Access
Yes
Building Details
Year Built
1924
Tenancy
Single
Listing Agency:
Marcus & Millichap - Phoenix
Listed By:
Mark Ruble · License #AZ SA550593000
(479) 785-4343
Source:
Crexi
Added: May 12
Changed: Aug 8
Last Checked: Jul 23 at 11:46AM
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 Marcus & Millichap - Phoenix
Investment Insights
Based on property information with market context.
This flex warehouse/office space has a tenant that recently exercised a seven-year lease renewal. The lease includes three percent annual rental increases and one, five-year renewal option remaining. The tenant has operated at the site since 2013, demonstrating long-term commitment to the property.
The location is in downtown Chicago with access in close proximity to Interstates 90 and 290, the “L” Chicago train line, and Metra commuter rail. The property is also situated just north of the Illinois Medical District and University Village.
The offering is comprised of flex warehouse and office space in a single commercial facility, suited to users looking for combined warehouse and office functionality under an existing tenant arrangement.
The location is in downtown Chicago with access in close proximity to Interstates 90 and 290, the “L” Chicago train line, and Metra commuter rail. The property is also situated just north of the Illinois Medical District and University Village.
The offering is comprised of flex warehouse and office space in a single commercial facility, suited to users looking for combined warehouse and office functionality under an existing tenant arrangement.
Key Highlights
- 1924‑built flex warehouse/office space in downtown Chicago
- Tenant exercised a seven‑year lease renewal with 3% annual rental increases
- Lease includes a remaining one, five‑year renewal option
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
$92,352
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
6.16%
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%
$1,847,040
$1.8M
Cap Rate 7%
$1,319,314
$1.3M
Cap Rate 9%
$1,026,133
$1.0M
Market Conditions
NOI Build-Up for 8,000 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
$153.6K $19.20/SF
− Vacancy
−$11.5K −$1.44/SF
EGI
$142.1K $17.76/SF
− OpEx
−$49.7K −$6.22/SF
NOI
$92.4K $11.54/SF
Area
Chicago, IL
Vacancy
7.50%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$1,847,040
Cap Rate 7%
$1,319,314
Cap Rate 9%
$1,026,133
Alternative Uses
Best Use
Office B
$2.45M
$2.15M – $2.86M
NOI $171,648 @ 7.0% cap · market cap 11.44%
Second Best
Flex RnD
$1.32M
$1.15M – $1.54M
NOI $92,352 @ 7.0% cap · market cap 6.16%
Theoretical Best
Office A
$3.77M
$3.30M – $4.40M
NOI $264,038 @ 7.0% cap · market cap 17.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
5,128
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60607, IL
31,816
Population
16,540
Households
1.9
Avg Household Size
31
Median Age
81%
College-Educated
97%
High-School Grad
2.3 sq mi
ZIP Area
13,833
Density / Sq Mi
$126,307
Median Household Income
$79,870
Median Earnings
$2,333
Median Rent
$494,300
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Flex warehouse with office space, currently under a long-term lease with periodic renewal options.
Where is this flex space located?
The property is located at 1438 West Lake Street Chicago, IL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 1924‑built flex warehouse/office space in downtown Chicago; Tenant exercised a seven‑year lease renewal with 3% annual rental increases; Lease includes a remaining one, five‑year renewal option
