Multi-Tenant Medical Office
For Sale
$825,000
720 Lake Street, Oak Park, IL 60301
Fully leased multi-tenant building with medical and professional services tenants, professionally managed, with recent parking and plumbing improvements.
Property Size5,600 SF
Price / SF$147.32
Days on Market357
Property Features for 720 Lake Street
General Information
Standard status
Active
Size
5,600 SF
Property subtype
General Commercial
Zoning
DT-2
Occupancy
100%
Amenities
Central Air
3
Building Details
Year Built
1929
Tenancy
Multi
Listing Agency:
Compass
(773) 466-7150
Listed By:
Compass · License #475176488
Source:
Xome
Added: Sep 1, 2025
Changed: Aug 23
Last Checked: Aug 14 at 7:40AM
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
Investment Insights
Based on property information with market context.
This fully leased multi-tenant investment opportunity includes a tenant mix in medical and professional services. Tenants have been in place for an average of 6 years, and the property is professionally managed. Three of the four leases feature annual rent increases of 3–5 percent throughout the remaining term, as well as any option periods. Recent capital improvements include work to the parking lot in 2020 and plumbing improvements in 2019.
The building is situated along the Lake St commercial corridor near Oak Park Ave in downtown Oak Park, surrounded by restaurants, shops, and small businesses, along with a dense residential population. The property is zoned DT-2, which allows a variety of commercial uses as well as residential use above the ground floor. This zoning also supports flexibility for future commercial tenants and includes the option to adapt the 2nd floor to residential use if desired.
The building is situated along the Lake St commercial corridor near Oak Park Ave in downtown Oak Park, surrounded by restaurants, shops, and small businesses, along with a dense residential population. The property is zoned DT-2, which allows a variety of commercial uses as well as residential use above the ground floor. This zoning also supports flexibility for future commercial tenants and includes the option to adapt the 2nd floor to residential use if desired.
Key Highlights
- Year built 1926 multi‑tenant building in downtown Oak Park with medical and professional services tenants
- Fully leased with a tenant mix that has been in place an average of 6 years
- Three of four leases include annual 3–5% rent increases through the remaining term and any option periods
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
$74,189
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
8.99%
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%
$1,483,780
$1.5M
Cap Rate 7%
$1,059,843
$1.1M
Cap Rate 9%
$824,322
$824.3K
Market Conditions
NOI Build-Up for 5,600 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
$134.4K $24.00/SF
− Vacancy
−$10.8K −$1.92/SF
EGI
$123.6K $22.08/SF
− OpEx
−$49.5K −$8.83/SF
NOI
$74.2K $13.25/SF
Area
Cook County, IL
Vacancy
8.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
40.00%
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%
$1,483,780
Cap Rate 7%
$1,059,843
Cap Rate 9%
$824,322
Alternative Uses
Best Use
Office B
$1.10M
$965.2K – $1.29M
NOI $77,215 @ 7.0% cap · market cap 9.36%
Second Best
Healthcare Medical
$1.06M
$927.4K – $1.24M
NOI $74,189 @ 7.0% cap · market cap 8.99%
Theoretical Best
Office A
$1.93M
$1.69M – $2.26M
NOI $135,340 @ 7.0% cap · market cap 16.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,771
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60301, IL
3,043
Population
2,129
Households
1.4
Avg Household Size
37
Median Age
79%
College-Educated
99%
High-School Grad
0.2 sq mi
ZIP Area
15,215
Density / Sq Mi
$103,448
Median Household Income
$77,900
Median Earnings
$2,295
Median Rent
$230,300
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 leased multi-tenant building with medical and professional services tenants, professionally managed, with recent parking and plumbing improvements.
Where is this medical office space located?
The property is located at 720 Lake Street Oak Park, IL.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: Year built 1926 multi‑tenant building in downtown Oak Park with medical and professional services tenants; Fully leased with a tenant mix that has been in place an average of 6 years; Three of four leases include annual 3–5% rent increases through the remaining term and any option periods
