Flex Space with
New
For Sale
$499,000
5962 N Elston Ave, Chicago, IL 60646
Mixed office and warehouse layout with B3-1 zoning and access to Chicago’s Northwest Side transportation network.
Property Size3,125 SF
Price / SF$159.68
Days on Market5
Property Features for 5962 N Elston Ave
General Information
Standard status
Active
Size
3,125 SF
Zoning
B3-1
Additional Details
Highway Access
Yes
Drive-In Doors
1
Building Details
Year Built
1963
Listing Agency:
Strauss Realty Ltd
Listed By:
Craig Wolf · License #475163046
(773) 736-3600
Source:
Liveliferealty
Added: Sep 11
Last Checked: Sep 14 at 4:02PM
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 Strauss Realty Ltd
Investment Insights
Based on property information with market context.
This 3,125-square-foot flex property combines office and warehouse functions in a building constructed in 1963. The interior includes private offices, an open office area, two washrooms, a break room, and a rear 20-by-30-foot warehouse with a 10.5-foot ceiling and drive-in door. The layout supports a range of office, retail, warehouse, service, and other commercial uses.
The property has 25 feet of frontage along Elston Avenue in Chicago’s Northwest Side mixed-use area. It is approximately one mile from I-90 and two miles from I-94, with CTA transportation nearby. B3-1 zoning provides flexibility for future use.
The property has 25 feet of frontage along Elston Avenue in Chicago’s Northwest Side mixed-use area. It is approximately one mile from I-90 and two miles from I-94, with CTA transportation nearby. B3-1 zoning provides flexibility for future use.
Key Highlights
- 3,125 SF office and warehouse building constructed in 1963
- Rear 20' x 30' warehouse with 10.5' ceiling height
- Drive‑in door serving the warehouse area
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
$36,075
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
7.23%
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%
$721,500
$721.5K
Cap Rate 7%
$515,357
$515.4K
Cap Rate 9%
$400,833
$400.8K
Market Conditions
NOI Build-Up for 3,125 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
$60.0K $19.20/SF
− Vacancy
−$4.5K −$1.44/SF
EGI
$55.5K $17.76/SF
− OpEx
−$19.4K −$6.22/SF
NOI
$36.1K $11.54/SF
Area
Chicago, IL
Vacancy
7.50%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$721,500
Cap Rate 7%
$515,357
Cap Rate 9%
$400,833
Alternative Uses
Best Use
Flex RnD
$515.4K
$450.9K – $601.3K
NOI $36,075 @ 7.0% cap · market cap 7.23%
Second Best
Warehouse
$338.2K
$295.9K – $394.5K
NOI $23,671 @ 7.0% cap · market cap 4.74%
Theoretical Best
Office A
$1.47M
$1.29M – $1.72M
NOI $103,140 @ 7.0% cap · market cap 20.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,217
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60646, IL
28,383
Population
11,636
Households
2.4
Avg Household Size
44
Median Age
58%
College-Educated
95%
High-School Grad
4.4 sq mi
ZIP Area
6,451
Density / Sq Mi
$111,115
Median Household Income
$66,105
Median Earnings
$1,241
Median Rent
$493,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Chicago, IL
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Frequently Asked Questions
What type of property is this?
Flex space - Mixed office and warehouse layout with B3-1 zoning and access to Chicago’s Northwest Side transportation network.
Where is this flex space located?
The property is located at 5962 N Elston Ave Chicago, IL.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: 3,125 SF office and warehouse building constructed in 1963; Rear 20' x 30' warehouse with 10.5' ceiling height; Drive‑in door serving the warehouse area
