Flex Space with Loading
For Sale
$2,199,000
242 N Western Avenue, Chicago, IL 60612
Commercial Sale, Chicago, IL
Property Size8,700 SF
Lot Size0.18 Acres
Price / SF$252.76
Days on Market77
Property Features for 242 N Western Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
PMD
Directions
On Western Ave, just south of Fulton.
Subdivision
CHI - Near West Side
Standard status
Active
APN
16124140870000
Lot size
0.18 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
19056
Utilities
Cooling system
Central Air, Zoned
Amenities
EV charging station
Building Details
Year built
1969
Floors in Building
2
Number of units
1
Flooring type
Concrete
Building materials
Brick
Listing Agency:
Jameson Sotheby's Intl Realty
(312) 751-0300
Listed By:
Michael Hulett · License #475111996
(312) 335-3291
Added: Jun 9
Changed: Aug 20
Last Checked: Aug 24 at 7:06PM
MLS# 12577677
Copyright © 2026 Midwest Real Estate Data, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 8,700 SF flex property combines a 6,400 SF warehouse with office, work, and support areas across two levels. The warehouse offers an open layout, 17-foot ceilings, two loading docks, private office space, workstations, a kitchenette, storage rooms, and two bathrooms. The upper level adds polished concrete flooring, an open workspace, custom bar and kitchen features, a full bathroom with shower, and additional storage. Central air, zoned cooling, full-building heating and cooling, and high R-value spray foam insulation support year-round use. The brick building was constructed in 1969 and includes a parking lot with snow-melt lines and an EV charging station. Electrical capacity includes 480a/3-phase service plus additional 220amp service. Located on Western Avenue in Chicago, the property offers exposure along a high-traffic corridor.
Key Highlights
- 8,700 SF flex building with 6,400 SF warehouse area
- 17‑foot warehouse ceilings with 2 loading docks measuring 13'6" and 10'6"
- 480a/3‑phase service plus additional 220amp electrical service
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
$186,667
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
8.49%
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%
$3,733,340
$3.7M
Cap Rate 7%
$2,666,671
$2.7M
Cap Rate 9%
$2,074,078
$2.1M
Market Conditions
NOI Build-Up for 8,700 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
$334.1K $38.40/SF
− Vacancy
−$85.2K −$9.79/SF
EGI
$248.9K $28.61/SF
− OpEx
−$62.2K −$7.15/SF
NOI
$186.7K $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%
$3,733,340
Cap Rate 7%
$2,666,671
Cap Rate 9%
$2,074,078
Alternative Uses
Best Use
Office B
$2.67M
$2.33M – $3.11M
NOI $186,667 @ 7.0% cap · market cap 8.49%
Second Best
Flex RnD
$1.43M
$1.26M – $1.67M
NOI $100,433 @ 7.0% cap · market cap 4.57%
Theoretical Best
Office A
$4.10M
$3.59M – $4.79M
NOI $287,142 @ 7.0% cap · market cap 13.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
17 ft
Clear height
2
Dock-high doors
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,799
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60612, IL
34,402
Population
16,763
Households
2.1
Avg Household Size
34
Median Age
41%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
9,298
Density / Sq Mi
$60,457
Median Household Income
$46,582
Median Earnings
$1,330
Median Rent
$331,600
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 - Versatile commercial building combining open warehouse capacity with finished office and workspace areas.
Where is this flex space located?
The property is located at 242 N Western Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $2,199,000.
What are key features of this property?
This property features: 8,700 SF flex building with 6,400 SF warehouse area; 17‑foot warehouse ceilings with 2 loading docks measuring 13'6" and 10'6"; 480a/3‑phase service plus additional 220amp electrical service
