Industrial Facility with Office
For Sale
Contact for pricing
2701 Harlem Ave, Chicago, IL 60707
17,475 SF industrial building with office, cooler, and docks.
Property Size17,475 SF
Price / SF$163.09
Days on Market165
Property Features for 2701 Harlem Ave
General Information
Standard status
Active
Size
17,475 SF
Property subtype
Industrial
Zoning
C1-1 (Retail, warehousing, auto shops, liquor store, apartments allowed)
Building Details
Stories
2
Listing Agency:
Colliers - Rosemont, Illinois
Listed By:
Vern Schultz · License #475066465
Source:
Crexi
Added: Mar 7
Changed: Aug 13
Last Checked: Aug 18 at 1:14PM
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 Colliers - Rosemont, Illinois
Investment Insights
Based on property information with market context.
This 17,475 square foot building includes 2,500 square feet of office space. The warehouse area features a 20-foot clear height on the first floor and a 16-foot clear height on the second floor. It is equipped with four docks. The property was formerly used as a corned beef factory and includes a cooler/freezer and a floor drain. It is suitable for food-related businesses.
Key Highlights
- 17,475 SF total space including 2,500 SF of office space.
- Includes cooler/freezer.
- 4 dock doors for efficient loading/unloading.
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
$132,367
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
4.64%
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%
$2,647,340
$2.6M
Cap Rate 7%
$1,890,957
$1.9M
Cap Rate 9%
$1,470,744
$1.5M
Market Conditions
NOI Build-Up for 17,475 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
$164.8K $9.43/SF
− Vacancy
−$9.1K −$0.52/SF
EGI
$155.7K $8.91/SF
− OpEx
−$23.4K −$1.34/SF
NOI
$132.4K $7.57/SF
Area
Chicago, IL
Vacancy
5.50%
Lease Rate
$9.43 /SF/Yr
Expense Ratio
15.00%
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%
$2,647,340
Cap Rate 7%
$1,890,957
Cap Rate 9%
$1,470,744
Alternative Uses
Best Use
Warehouse
$1.89M
$1.65M – $2.21M
NOI $132,367 @ 7.0% cap · market cap 4.64%
Second Best
Industrial
$1.57M
$1.37M – $1.83M
NOI $109,585 @ 7.0% cap · market cap 3.85%
Theoretical Best
Office A
$8.24M
$7.21M – $9.61M
NOI $576,759 @ 7.0% cap · market cap 20.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,075
Businesses Nearby
Explore this area
Business Placement
Demographics for 60707, IL
43,241
Population
16,590
Households
2.6
Avg Household Size
41
Median Age
31%
College-Educated
86%
High-School Grad
3.6 sq mi
ZIP Area
12,011
Density / Sq Mi
$82,746
Median Household Income
$48,093
Median Earnings
$1,309
Median Rent
$315,300
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - 17,475 SF industrial building with office, cooler, and docks.
Where is this manufacturing property located?
The property is located at 2701 Harlem Ave Chicago, IL.
What is the asking price?
The asking price for this property is $2,850,000.
What are key features of this property?
This property features: 17,475 SF total space including 2,500 SF of office space.; Includes cooler/freezer.; 4 dock doors for efficient loading/unloading.
