Chatham Industrial Site For
For Sale
$2,500,000
8452 South Lafayette Avenue, Chicago, IL 60620
18,200 SF industrial building on 2.50 AC land.
Property Size18,200 SF
Lot Size2.50 Acres
Price / SF$137.36
Days on Market149
Property Features for 8452 South Lafayette Avenue
General Information
Standard status
Active
Size
18,200 SF
Lot size
2.50 Acres
Property subtype
Industrial
Listing Agency:
CBRE | Chicago
(312) 935-1030
Listed By:
Mike Nardini
(312) 935-1030
Source:
Cbre
Added: Mar 25
Changed: Jul 6
Last Checked: Aug 20 at 4:57AM
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 CBRE | Chicago
Investment Insights
Based on property information with market context.
This 18,200 square foot industrial property is situated on a 2.50-acre land site in the Chatham community, offering frontage on the Dan Ryan Expressway. Constructed in 1950, the building features 13-foot clear height and three drive-in doors. The zoning is M2-2, and surface parking is available. The property consists of PINS 20-33-409-019 through -022. 2023 taxes totaled $73,136.57. A 5-foot electric billboard on the property generates $12,500 annually. The Chatham community has a population of 31,710 and a median household income of $33,000. The site is located between the CTA Red Line station and the Gresham Metra Rock Island station, both at 87th Street. Industrial opportunities with expressway frontage are rare.
Key Highlights
- Rare industrial opportunity with expressway frontage on the Dan Ryan Expressway
- 2.50 AC Land Site
- Zoned M2‑2 industrial zoning
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
$114,131
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
4.57%
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%
$2,282,620
$2.3M
Cap Rate 7%
$1,630,443
$1.6M
Cap Rate 9%
$1,268,122
$1.3M
Market Conditions
NOI Build-Up for 18,200 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
$171.6K $9.43/SF
− Vacancy
−$8.6K −$0.47/SF
EGI
$163.0K $8.96/SF
− OpEx
−$48.9K −$2.69/SF
NOI
$114.1K $6.27/SF
Area
Chicago, IL
Vacancy
5.00%
Lease Rate
$9.43 /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%
$2,282,620
Cap Rate 7%
$1,630,443
Cap Rate 9%
$1,268,122
Alternative Uses
Best Use
Industrial
$1.63M
$1.43M – $1.90M
NOI $114,131 @ 7.0% cap · market cap 4.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.58M
$7.51M – $10.01M
NOI $600,687 @ 7.0% cap · market cap 24.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
609
Businesses Nearby
Explore this area
Business Placement
Demographics for 60620, IL
66,514
Population
30,008
Households
2.2
Avg Household Size
41
Median Age
20%
College-Educated
88%
High-School Grad
7.0 sq mi
ZIP Area
9,502
Density / Sq Mi
$48,805
Median Household Income
$36,285
Median Earnings
$1,093
Median Rent
$187,900
Median Home Value
Market
Vacancy Rate% for Industrial in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - 18,200 SF industrial building on 2.50 AC land.
Where is this industrial property located?
The property is located at 8452 South Lafayette Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Rare industrial opportunity with expressway frontage on the Dan Ryan Expressway; 2.50 AC Land Site; Zoned M2‑2 industrial zoning
