Flex Warehouse with Office
For Sale
$2,199,000
242 North Western Avenue, Chicago, IL 60612
Two-story flex layout combines an open-span warehouse with full HVAC and powered workplace support.
Property Size8,700 SF
Price / SF$252.76
Days on Market54
Property Features for 242 North Western Avenue
General Information
Standard status
Active
Size
8,700 SF
Property subtype
Factory
Zoning
PMD4
Warehouse & Industrial
Clear Height
17 ft
Dock-High Doors
2
Heavy Power
Yes
Additional Details
Highway Access
Yes
Building Details
Building Size
8,700 SF
Stories
2
Listing Agency:
Jameson Commercial
(312) 867-2265
Listed By:
Mark Kishtow · License #471010965
(312) 867-2265
Source:
Thebrokerlist
Added: Jun 28
Changed: Aug 19
Last Checked: Aug 20 at 4:03AM
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 Jameson Commercial
Investment Insights
Based on property information with market context.
This for-sale flex property totals 8,700 SF and blends a warehouse main floor with a finished second-floor office workspace. The main level includes 17-foot ceilings, a largely open span warehouse area, a private office, open workstations, a kitchenette, storage rooms, and two bathrooms. Two loading docks are in place (13'6" and 10'6"), supported by high R-value spray foam insulation throughout.
The second floor provides a polished-concrete, open workspace with a custom bar and kitchen, a full bath with shower, and a large storage room. The property also includes an EV charging station and a parking lot with snow-melt lines. Electrical service is substantial, with 480A/3-phase plus an additional 220A service, along with full heating and air conditioning throughout. The property is zoned PMD4.
With both warehouse operations and workplace space under one roof, this building is positioned for tenants seeking an integrated flex setup. The combination of high ceilings, two loading docks, and dedicated office areas can support a range of industrial and manufacturing-oriented business types, while the maintained condition and flexible floor plan can accommodate different operating models.
The second floor provides a polished-concrete, open workspace with a custom bar and kitchen, a full bath with shower, and a large storage room. The property also includes an EV charging station and a parking lot with snow-melt lines. Electrical service is substantial, with 480A/3-phase plus an additional 220A service, along with full heating and air conditioning throughout. The property is zoned PMD4.
With both warehouse operations and workplace space under one roof, this building is positioned for tenants seeking an integrated flex setup. The combination of high ceilings, two loading docks, and dedicated office areas can support a range of industrial and manufacturing-oriented business types, while the maintained condition and flexible floor plan can accommodate different operating models.
Key Highlights
- Two‑story 8,700 SF flex building with 6,400 SF open‑span warehouse plus office/workspace areas
- Warehouse features 17‑ft ceilings and largely open span design, with two loading docks (13'6" and 10'6")
- Main floor includes a large private office, open workstations, kitchenette, multiple storage rooms, and two bathrooms
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
Heavy power
Yes
Highway 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 - Two-story flex layout combines an open-span warehouse with full HVAC and powered workplace support.
Where is this flex space located?
The property is located at 242 North 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: Two‑story 8,700 SF flex building with 6,400 SF open‑span warehouse plus office/workspace areas; Warehouse features 17‑ft ceilings and largely open span design, with two loading docks (13'6" and 10'6"); Main floor includes a large private office, open workstations, kitchenette, multiple storage rooms, and two bathrooms
