Brick Flex Space with Warehouse
New
For Sale
$850,000
2722 S Hillock Ave, Chicago, IL 60608
Mixed-use layout combines office areas, renovated amenities, conference space, and rear warehouse access.
Property Size7,000 SF
Price / SF$121.43
Days on Market2
Property Features for 2722 S Hillock Ave
General Information
Standard status
Active
Size
7,000 SF
Building Details
Year Built
1954
Building Size
7,000 SF
Construction
brick
Listing Agency:
Jameson Sotheby's Intl Realty
Listed By:
Natalie Ruffolo · License #475182822
(312) 485-9904
Source:
Bktchicago
Added: Sep 1
Last Checked: Sep 1 at 9:23PM
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 Sotheby's Intl Realty
Investment Insights
Based on property information with market context.
Built in 1954, this approximately 7,000-square-foot brick flex property occupies two city lots and combines office and warehouse functions. The main building includes open work areas, private offices, a kitchen, and two restrooms that have been renovated. A large conference room on the second level adds dedicated meeting space.
Two substantial warehouse areas are positioned behind the office portion, with an overhead garage door providing direct access. Street parking is available. The property is offered in its existing condition, providing a combination of office, meeting, and storage-oriented improvements within one building.
Two substantial warehouse areas are positioned behind the office portion, with an overhead garage door providing direct access. Street parking is available. The property is offered in its existing condition, providing a combination of office, meeting, and storage-oriented improvements within one building.
Key Highlights
- Approximately 7,000 square feet of brick mixed‑use space
- Two city lots with office and warehouse components
- Open office areas plus private offices
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
$53,023
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
6.24%
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%
$1,060,460
$1.1M
Cap Rate 7%
$757,471
$757.5K
Cap Rate 9%
$589,144
$589.1K
Market Conditions
NOI Build-Up for 7,000 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
$66.0K $9.43/SF
− Vacancy
−$3.6K −$0.52/SF
EGI
$62.4K $8.91/SF
− OpEx
−$9.4K −$1.34/SF
NOI
$53.0K $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%
$1,060,460
Cap Rate 7%
$757,471
Cap Rate 9%
$589,144
Alternative Uses
Best Use
Office B
$2.15M
$1.88M – $2.50M
NOI $150,192 @ 7.0% cap · market cap 17.67%
Second Best
Flex RnD
$1.15M
$1.01M – $1.35M
NOI $80,808 @ 7.0% cap · market cap 9.51%
Theoretical Best
Office A
$3.30M
$2.89M – $3.85M
NOI $231,034 @ 7.0% cap · market cap 27.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
973
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60608, IL
75,770
Population
32,617
Households
2.3
Avg Household Size
34
Median Age
34%
College-Educated
77%
High-School Grad
6.2 sq mi
ZIP Area
12,221
Density / Sq Mi
$70,704
Median Household Income
$42,211
Median Earnings
$1,208
Median Rent
$341,500
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
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Frequently Asked Questions
What type of property is this?
Flex space - Mixed-use layout combines office areas, renovated amenities, conference space, and rear warehouse access.
Where is this flex space located?
The property is located at 2722 S Hillock Ave Chicago, IL.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Approximately 7,000 square feet of brick mixed‑use space; Two city lots with office and warehouse components; Open office areas plus private offices
