Versatile Commercial Warehouse on
For Sale
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640 E Northwest Highway, Palatine, IL 60074
3,500 SF commercial warehouse on high-traffic corner location.
Property Size3,500 SF
Price / SF$151.14
Days on Market173
Property Features for 640 E Northwest Highway
General Information
Standard status
Active
Size
3,500 SF
Property subtype
Industrial
Zoning
COMMR
Building Details
Year Built
1950
Units
1
Listing Agency:
Compass Chicago
(773) 516-1111
Listed By:
Rafay Qamar · License #IL 475158420
Source:
Crexi
Added: Feb 25
Changed: Aug 16
Last Checked: Aug 17 at 6:02PM
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 Compass Chicago
Investment Insights
Based on property information with market context.
This commercial warehouse offers approximately 3,500 square feet of space. It is located on a corner lot in a high-traffic, high-visibility area. The property is suitable for a range of businesses, including auto repair, vehicle sales, service operations, or light industrial use. The building includes two 10' x 10' drive-in garage doors. It also features a newer roof and updated exterior stucco. The property includes a reception space area, garage space, and a large basement for extra storage. There is a large parking area, providing accessibility and exposure.
Key Highlights
- High‑traffic, high‑visibility corner location
- Approximately 3,500 square feet of versatile space
- Large parking 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
$48,581
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
9.18%
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%
$971,620
$971.6K
Cap Rate 7%
$694,014
$694.0K
Cap Rate 9%
$539,789
$539.8K
Market Conditions
NOI Build-Up for 3,500 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
$75.6K $21.60/SF
− Vacancy
−$6.2K −$1.77/SF
EGI
$69.4K $19.83/SF
− OpEx
−$20.8K −$5.95/SF
NOI
$48.6K $13.88/SF
Area
Cook County, IL
Vacancy
8.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$971,620
Cap Rate 7%
$694,014
Cap Rate 9%
$539,789
Alternative Uses
Best Use
Retail
$694.0K
$607.3K – $809.7K
NOI $48,581 @ 7.0% cap · market cap 9.18%
Second Best
Warehouse
$261.4K
$228.7K – $304.9K
NOI $18,295 @ 7.0% cap · market cap 3.46%
Theoretical Best
Office A
$1.21M
$1.06M – $1.41M
NOI $84,587 @ 7.0% cap · market cap 15.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,047
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 60074, IL
37,705
Population
14,953
Households
2.5
Avg Household Size
38
Median Age
42%
College-Educated
85%
High-School Grad
7.1 sq mi
ZIP Area
5,311
Density / Sq Mi
$81,911
Median Household Income
$45,217
Median Earnings
$1,429
Median Rent
$307,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Public Storage — 945 Rohlwing Rd, Rolling Meadows, IL 60008
- Safeguard Self Storage — 1136 E Northwest Hwy, Palatine, IL 60074
- Hennessy Group Inc — 800 e northwest hwy #1095, palatine, il 60074
Frequently Asked Questions
What type of property is this?
Warehouse - 3,500 SF commercial warehouse on high-traffic corner location.
Where is this warehouse located?
The property is located at 640 E Northwest Highway Palatine, IL.
What is the asking price?
The asking price for this property is $529,000.
What are key features of this property?
This property features: High‑traffic, high‑visibility corner location; Approximately 3,500 square feet of versatile space; Large parking area
