Retail-Office Building with Ample
For Sale
$915,000
Pending
2620 165th St, Hammond, IN 46323
Versatile space on 165th Street with on-site parking and adaptable layout for retail, office, medical, or services.
Property Size8,656 SF
Days on Market173
Property Features for 2620 165th St
General Information
Standard status
Pending
Size
8,656 SF
Taxes and HOA fees
Annual Taxes
$9,692
Listing Agency:
Realest.com
(219) 808-1520
Listed By:
Joshua Austgen
(219) 293-1657
Source:
Exprealty
Added: Mar 25
Changed: Sep 4
Last Checked: Sep 12 at 2:14PM
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 Realest.com
Investment Insights
Based on property information with market context.
This for-sale commercial property offers a functional, adaptable layout suitable for a range of business needs. The space is described as versatile for retail, office, medical, or service-based operations, with configuration that can be tailored to your requirements.
Located at 2620 165th St in Hammond on 165th Street, the property is positioned for strong day-to-day exposure. The remarks also note ample on-site parking for customers and employees, along with convenient access to major roadways and nearby restaurants and established businesses.
The building is listed for sale at 8,656 square feet, providing a flexible option for owner-users or investors looking to establish or expand within a growing commercial corridor.
Located at 2620 165th St in Hammond on 165th Street, the property is positioned for strong day-to-day exposure. The remarks also note ample on-site parking for customers and employees, along with convenient access to major roadways and nearby restaurants and established businesses.
The building is listed for sale at 8,656 square feet, providing a flexible option for owner-users or investors looking to establish or expand within a growing commercial corridor.
Key Highlights
- Versatile commercial property on 165th Street in Hammond with an adaptable layout
- Suitable for retail, office, medical, or service‑based business uses
- High‑visibility location on 165th Street with strong daily traffic counts
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
$83,413
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
9.12%
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%
$1,668,260
$1.7M
Cap Rate 7%
$1,191,614
$1.2M
Cap Rate 9%
$926,811
$926.8K
Market Conditions
NOI Build-Up for 8,656 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
$124.6K $14.40/SF
− Vacancy
−$5.5K −$0.63/SF
EGI
$119.2K $13.77/SF
− OpEx
−$35.7K −$4.13/SF
NOI
$83.4K $9.64/SF
Area
Lake County, IN
Vacancy
4.40%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$1,668,260
Cap Rate 7%
$1,191,614
Cap Rate 9%
$926,811
Alternative Uses
Best Use
Office B
$1.57M
$1.37M – $1.83M
NOI $109,798 @ 7.0% cap · market cap 12.00%
Second Best
Retail
$1.19M
$1.04M – $1.39M
NOI $83,413 @ 7.0% cap · market cap 9.12%
Theoretical Best
Specialty Retail
$2.42M
$2.11M – $2.82M
NOI $169,149 @ 7.0% cap · market cap 18.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
445
Businesses Nearby
Explore this area
Business Placement
Demographics for 46323, IN
22,510
Population
8,955
Households
2.5
Avg Household Size
35
Median Age
15%
College-Educated
85%
High-School Grad
6.2 sq mi
ZIP Area
3,631
Density / Sq Mi
$56,906
Median Household Income
$35,292
Median Earnings
$1,189
Median Rent
$149,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office units - Versatile space on 165th Street with on-site parking and adaptable layout for retail, office, medical, or services.
Where is this office units located?
The property is located at 2620 165th St Hammond, IN.
What is the asking price?
The asking price for this property is $915,000.
What are key features of this property?
This property features: Versatile commercial property on 165th Street in Hammond with an adaptable layout; Suitable for retail, office, medical, or service‑based business uses; High‑visibility location on 165th Street with strong daily traffic counts
