Office Building with Long-Term
For Sale
Contact for pricing
55 E Erie St, Chicago, IL 60611
Office building offering 3,979 rentable square feet on a 0.61-acre parcel with a 7-year lease through May 2031.
Property Size3,979 SF
Lot Size0.61 Acres
Price / SF$753.96
Days on Market564
Property Features for 55 E Erie St
General Information
Standard status
Active
Size
3,979 SF
Lot size
0.61 Acres
Property subtype
OFFICE
Listing Agency:
SAB
(646) 809-8856
Listed By:
Mark Pomella · License #10401305401
(646) 809-8840
Source:
Moodyscre
Added: Feb 18, 2025
Changed: Aug 23
Last Checked: Jul 22 at 2:45AM
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 SAB
Investment Insights
Based on property information with market context.
This office building offers 3,979 rentable square feet on a 0.61-acre parcel along East Erie Street. In 2024, Compass entered into a new 7-year lease with the primary term extending through May 2031. The lease includes annual escalations of 3% and provides two 5-year renewal options.
Located in the Magnificent Mile area of Chicago, the property is positioned near Loyola University Chicago and The School of the Art Institute of Chicago, supporting steady demand from nearby institutions.
Located in the Magnificent Mile area of Chicago, the property is positioned near Loyola University Chicago and The School of the Art Institute of Chicago, supporting steady demand from nearby institutions.
Key Highlights
- Office building with 3,979 rentable SF on a 0.61‑acre parcel along East Erie Street.
- 2024 lease commitment: 7‑year primary term through May 2031.
- Lease includes annual 3% escalations.
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
$85,373
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
2.85%
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%
$1,707,460
$1.7M
Cap Rate 7%
$1,219,614
$1.2M
Cap Rate 9%
$948,589
$948.6K
Market Conditions
NOI Build-Up for 3,979 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
$152.8K $38.40/SF
− Vacancy
−$39.0K −$9.79/SF
EGI
$113.8K $28.61/SF
− OpEx
−$28.5K −$7.15/SF
NOI
$85.4K $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%
$1,707,460
Cap Rate 7%
$1,219,614
Cap Rate 9%
$948,589
Alternative Uses
Best Use
Office B
$1.22M
$1.07M – $1.42M
NOI $85,373 @ 7.0% cap · market cap 2.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.88M
$1.64M – $2.19M
NOI $131,326 @ 7.0% cap · market cap 4.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
33,588
Businesses Nearby
Explore this area
Business Placement
Demographics for 60611, IL
38,456
Population
28,239
Households
1.4
Avg Household Size
39
Median Age
88%
College-Educated
99%
High-School Grad
0.8 sq mi
ZIP Area
48,070
Density / Sq Mi
$124,621
Median Household Income
$92,917
Median Earnings
$2,416
Median Rent
$608,200
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?
Office building - Office building offering 3,979 rentable square feet on a 0.61-acre parcel with a 7-year lease through May 2031.
Where is this office building located?
The property is located at 55 E Erie St Chicago, IL.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Office building with 3,979 rentable SF on a 0.61‑acre parcel along East Erie Street.; 2024 lease commitment: 7‑year primary term through May 2031.; Lease includes annual 3% escalations.
