South Loop Office Building
For Sale
$6,900,000
1455 S Michigan Avenue, Chicago, IL 60605
For sale 22,500 SF office building on a half-acre site with DX-7 zoning and an operating business onsite.
Property Size22,500 SF
Lot Size0.50 Acres
Price / SF$306.67
Days on Market52
Property Features for 1455 S Michigan Avenue
General Information
Standard status
Active
Size
22,500 SF
Lot size
0.50 Acres
Zoning
OFFIC
Net Operating Income
$446,570
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$198,859
Building Details
Year Built
1910
Stories
2
Listing Agency:
Berkshire Hathaway HomeServices Speckman Realty
(815) 922-6924
Listed By:
LISA SANFORD · License #471002971
(815) 922-6924
Source:
Lisasanford.idxbroker
Added: Jun 30
Changed: Aug 17
Last Checked: Aug 20 at 4:05AM
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 Berkshire Hathaway HomeServices Speckman Realty
Investment Insights
Based on property information with market context.
This offering includes a 22,500 SF office building situated on a half-acre land site. The property is currently improved and houses a successful operating business. Public remarks indicate the business generates over $2,000,000 in revenue, which may appeal to both investors and owner-users seeking an established operation at acquisition.
The building is presented as an opportunity in Chicago’s South Loop corridor. While the exact building configuration beyond its office use is not detailed here, the property is marketed as a versatile site supported by its current DX-7 zoning designation.
From a tenant or owner-user standpoint, the existing office improvements provide a ready platform for an organization looking to occupy space within an established business environment. For buyers evaluating redevelopment or re-positioning, the public remarks note that the property’s DX-7 zoning provides a foundation for multiple potential strategic plays, including options related to development intensity. Interested parties should review the zoning details and operational circumstances during their due diligence and can request additional information or a tour to evaluate fit and next steps.
The building is presented as an opportunity in Chicago’s South Loop corridor. While the exact building configuration beyond its office use is not detailed here, the property is marketed as a versatile site supported by its current DX-7 zoning designation.
From a tenant or owner-user standpoint, the existing office improvements provide a ready platform for an organization looking to occupy space within an established business environment. For buyers evaluating redevelopment or re-positioning, the public remarks note that the property’s DX-7 zoning provides a foundation for multiple potential strategic plays, including options related to development intensity. Interested parties should review the zoning details and operational circumstances during their due diligence and can request additional information or a tour to evaluate fit and next steps.
Key Highlights
- 22,500 SF office building on a 1/2‑acre land site in Chicago’s South Loop corridor
- Year built 1910 office building
- On‑site operating business currently generating over $2,000,000 in revenue
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
$482,760
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
7.00%
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%
$9,655,200
$9.7M
Cap Rate 7%
$6,896,571
$6.9M
Cap Rate 9%
$5,364,000
$5.4M
Market Conditions
NOI Build-Up for 22,500 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
$864.0K $38.40/SF
− Vacancy
−$220.3K −$9.79/SF
EGI
$643.7K $28.61/SF
− OpEx
−$160.9K −$7.15/SF
NOI
$482.8K $21.46/SF
Area
Chicago, IL
Vacancy
25.50%
Lease Rate
$38.40 /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%
$9,655,200
Cap Rate 7%
$6,896,571
Cap Rate 9%
$5,364,000
Alternative Uses
Best Use
Office B
$6.90M
$6.03M – $8.05M
NOI $482,760 @ 7.0% cap · market cap 7.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.61M
$9.28M – $12.38M
NOI $742,608 @ 7.0% cap · market cap 10.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
4,044
Businesses Nearby
Explore this area
Business Placement
Demographics for 60605, IL
34,071
Population
20,478
Households
1.7
Avg Household Size
34
Median Age
82%
College-Educated
96%
High-School Grad
1.4 sq mi
ZIP Area
24,336
Density / Sq Mi
$118,403
Median Household Income
$82,091
Median Earnings
$2,402
Median Rent
$495,900
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?
Office building - For sale 22,500 SF office building on a half-acre site with DX-7 zoning and an operating business onsite.
Where is this office building located?
The property is located at 1455 S Michigan Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $6,900,000.
What are key features of this property?
This property features: 22,500 SF office building on a 1/2‑acre land site in Chicago’s South Loop corridor; Year built 1910 office building; On‑site operating business currently generating over $2,000,000 in revenue
