Turnkey Medical Office
For Sale
$525,000
6745 West 127th Street, Palos Heights, IL 60463
Fully renovated office building with private offices, conference space, reception, and onsite parking field.
Property Size2,500 SF
Days on Market41
Property Features for 6745 West 127th Street
General Information
Standard status
Active
Size
2,500 SF
Class
B
Property subtype
Office
Additional Details
Office Units
1
Building Details
Building Size
2,500 SF
Tenancy
Single
Listing Agency:
SVN | Chicago Commercial
(708) 289-0297
Listed By:
James Mead, CCIM · License #471012893
(708) 289-0297
Source:
Svnchicago
Added: Jul 11
Changed: Aug 19
Last Checked: Aug 20 at 5:38AM
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 SVN | Chicago Commercial
Investment Insights
Based on property information with market context.
Westgate Courtyard is a fully renovated, turnkey office building suited for medical and professional office use. The interior includes three private offices, a large conference room, a reception area, administrative workspace, a kitchen, and storage. The building has recently completed updates to finishes, along with HVAC, plumbing, and electrical systems.
The property features expansive windows and skylights that provide abundant natural light, and it includes well-maintained lobby and common areas with modern design. A landscaped exterior and a generous parking field support straightforward staff and visitor access.
The layout is designed for efficient operations, with strategically planned circulation and signage to support tenant visibility.
The property features expansive windows and skylights that provide abundant natural light, and it includes well-maintained lobby and common areas with modern design. A landscaped exterior and a generous parking field support straightforward staff and visitor access.
The layout is designed for efficient operations, with strategically planned circulation and signage to support tenant visibility.
Key Highlights
- Fully renovated office building with recently completed total gut renovation to building finishes
- Ideal for medical or office use with three private offices plus large conference room
- Includes reception area, administrative workspace, kitchen, and storage
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
$34,471
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
6.57%
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%
$689,420
$689.4K
Cap Rate 7%
$492,443
$492.4K
Cap Rate 9%
$383,011
$383.0K
Market Conditions
NOI Build-Up for 2,500 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
$61.2K $24.48/SF
− Vacancy
−$15.2K −$6.10/SF
EGI
$46.0K $18.38/SF
− OpEx
−$11.5K −$4.60/SF
NOI
$34.5K $13.79/SF
Area
Cook County, IL
Vacancy
24.90%
Lease Rate
$24.48 /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%
$689,420
Cap Rate 7%
$492,443
Cap Rate 9%
$383,011
Alternative Uses
Best Use
Office B
$492.4K
$430.9K – $574.5K
NOI $34,471 @ 7.0% cap · market cap 6.57%
Second Best
Healthcare Medical
$473.1K
$414.0K – $552.0K
NOI $33,120 @ 7.0% cap · market cap 6.31%
Theoretical Best
Office A
$863.1K
$755.3K – $1.01M
NOI $60,420 @ 7.0% cap · market cap 11.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,054
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60463, IL
14,048
Population
5,501
Households
2.6
Avg Household Size
52
Median Age
41%
College-Educated
97%
High-School Grad
5.3 sq mi
ZIP Area
2,651
Density / Sq Mi
$105,389
Median Household Income
$64,885
Median Earnings
$2,119
Median Rent
$343,700
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully renovated office building with private offices, conference space, reception, and onsite parking field.
Where is this medical office space located?
The property is located at 6745 West 127th Street Palos Heights, IL.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Fully renovated office building with recently completed total gut renovation to building finishes; Ideal for medical or office use with three private offices plus large conference room; Includes reception area, administrative workspace, kitchen, and storage
