Medical Office with On-Site
New
For Sale
$1,200,000
3918 W 63rd Street, Chicago, IL 60629
A vacant healthcare facility includes dedicated parking and three separate HVAC systems.
Property Size5,000 SF
Lot Size0.14 Acres
Price / SF$240
Days on Market6
Property Features for 3918 W 63rd Street
General Information
Standard status
Active
Size
5,000 SF
Lot size
0.14 Acres
Property subtype
COMMERCIAL
Zoning
B1-1
Taxes and HOA fees
Annual Taxes
$16,827
Amenities
three separate HVAC systems
Building Details
Building Size
5,000 SF
Year Built
1952
Buildings
1
Stories
1
Listing Agency:
Jameson Commercial
Listed By:
Steven Goldstein
(312) 216-8000
Source:
Dawnmckennagroup
Added: Sep 25
Changed: Sep 29
Last Checked: Sep 29 at 11:22AM
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.
At 3918 W 63rd Street, this 5,000-square-foot medical office occupies a 0.14-acre site and is offered vacant. The single-story building has a healthcare-oriented layout, three independent HVAC systems, and B1-1 zoning. Parking includes an enclosed area at the rear for physicians and staff, plus two exterior spaces accessed from the alley. The existing configuration can support a specialty medical practice or other healthcare use, including an ambulatory surgery center.
The property is in Chicago’s Southwest Side medical corridor, with six medical operators within a half-mile. Midway International Airport is approximately 2.7 miles away, while O’Hare International Airport is approximately 22 miles from the site.
The property is in Chicago’s Southwest Side medical corridor, with six medical operators within a half-mile. Midway International Airport is approximately 2.7 miles away, while O’Hare International Airport is approximately 22 miles from the site.
Key Highlights
- 5,000 SF medical office on a 0.14‑acre lot
- Vacant, single‑story healthcare facility with B1‑1 zoning
- Three separate HVAC systems
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
$90,493
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
7.54%
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%
$1,809,860
$1.8M
Cap Rate 7%
$1,292,757
$1.3M
Cap Rate 9%
$1,005,478
$1.0M
Market Conditions
NOI Build-Up for 5,000 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
$159.6K $31.92/SF
− Vacancy
−$38.9K −$7.79/SF
EGI
$120.7K $24.13/SF
− OpEx
−$30.2K −$6.03/SF
NOI
$90.5K $18.10/SF
Area
ZIP 60629
Vacancy
24.40%
Lease Rate
$31.92 /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%
$1,809,860
Cap Rate 7%
$1,292,757
Cap Rate 9%
$1,005,478
Alternative Uses
Best Use
Office B
$1.29M
$1.13M – $1.51M
NOI $90,493 @ 7.0% cap · market cap 7.54%
Second Best
Healthcare Medical
$946.3K
$828.0K – $1.10M
NOI $66,240 @ 7.0% cap · market cap 5.52%
Theoretical Best
Warehouse
$4.49M
$3.92M – $5.23M
NOI $313,975 @ 7.0% cap · market cap 26.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,121
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60629, IL
114,453
Population
36,283
Households
3.2
Avg Household Size
33
Median Age
14%
College-Educated
74%
High-School Grad
7.0 sq mi
ZIP Area
16,350
Density / Sq Mi
$58,813
Median Household Income
$34,635
Median Earnings
$1,106
Median Rent
$236,300
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Chicago, IL
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Frequently Asked Questions
What type of property is this?
Medical Office Space - A vacant healthcare facility includes dedicated parking and three separate HVAC systems.
Where is this medical office space located?
The property is located at 3918 W 63rd Street Chicago, IL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 5,000 SF medical office on a 0.14‑acre lot; Vacant, single‑story healthcare facility with B1‑1 zoning; Three separate HVAC systems
