8-Unit Office
For Sale
$2,495,000
1523 Essington Road, Joliet, IL 60435
Fully leased office property with medical-sector occupancy and a configuration designed for multiple suites.
Property Size11,842 SF
Price / SF$210.69
Days on Market141
Property Features for 1523 Essington Road
General Information
Standard status
Active
Size
11,842 SF
Property subtype
Commercial
Occupancy
100%
Additional Details
Highway Access
Yes
Office Units
8
Taxes and HOA fees
Annual Taxes
$44,887
Building Details
Building Size
11,842 SF
Year Built
2006
Stories
1
Units
4
Tenancy
Multi
Listing Agency:
Realty Executives New Image
(708) 974-1000
Listed By:
Valdy Biernacki · License #3040396
(708) 974-1000
Source:
Cavanaghrealty
Added: Apr 11
Changed: Aug 28
Last Checked: Aug 25 at 7:43AM
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 Realty Executives New Image
Investment Insights
Based on property information with market context.
Built in 2006, this office property contains approximately 11,842 square feet arranged as 8 office units or condominiums. The current configuration places the space with four tenants, including three medical-sector occupants, while the building was originally designed for eight separate units.
The property is fully leased under long-term agreements. Tenants are responsible for their own utilities and insurance, and a national corporation occupies space under a multi-year sub-rent agreement supporting virtual and in-person office use. The asset is located at 1523 Essington Rd in Joliet, Illinois, with access to I-80 and I-55. If tenants downsize, the existing layout may allow the property to be returned toward its original multi-unit configuration.
The property is fully leased under long-term agreements. Tenants are responsible for their own utilities and insurance, and a national corporation occupies space under a multi-year sub-rent agreement supporting virtual and in-person office use. The asset is located at 1523 Essington Rd in Joliet, Illinois, with access to I-80 and I-55. If tenants downsize, the existing layout may allow the property to be returned toward its original multi-unit configuration.
Key Highlights
- Approximately 11,842 SF of office space
- 8 office units or condominiums within the property
- Fully leased to 4 tenants under long‑term agreements
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
$179,051
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
7.18%
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%
$3,581,020
$3.6M
Cap Rate 7%
$2,557,871
$2.6M
Cap Rate 9%
$1,989,456
$2.0M
Market Conditions
NOI Build-Up for 11,842 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
$284.2K $24.00/SF
− Vacancy
−$45.5K −$3.84/SF
EGI
$238.7K $20.16/SF
− OpEx
−$59.7K −$5.04/SF
NOI
$179.1K $15.12/SF
Area
Joliet, IL
Vacancy
16.00%
Lease Rate
$24.00 /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%
$3,581,020
Cap Rate 7%
$2,557,871
Cap Rate 9%
$1,989,456
Alternative Uses
Best Use
Office B
$2.56M
$2.24M – $2.98M
NOI $179,051 @ 7.0% cap · market cap 7.18%
Second Best
Healthcare Medical
$2.55M
$2.23M – $2.97M
NOI $178,412 @ 7.0% cap · market cap 7.15%
Theoretical Best
Office A
$3.49M
$3.06M – $4.07M
NOI $244,419 @ 7.0% cap · market cap 9.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
424
Businesses Nearby
Explore this area
Business Placement
Demographics for 60435, IL
48,927
Population
20,162
Households
2.4
Avg Household Size
37
Median Age
23%
College-Educated
85%
High-School Grad
10.8 sq mi
ZIP Area
4,530
Density / Sq Mi
$74,967
Median Household Income
$41,201
Median Earnings
$1,145
Median Rent
$217,200
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 - Fully leased office property with medical-sector occupancy and a configuration designed for multiple suites.
Where is this office building located?
The property is located at 1523 Essington Road Joliet, IL.
What is the asking price?
The asking price for this property is $2,495,000.
What are key features of this property?
This property features: Approximately 11,842 SF of office space; 8 office units or condominiums within the property; Fully leased to 4 tenants under long‑term agreements
