Medical Office Space with 6
For Sale
Contact for pricing
875 N Milwaukee Ave, Chicago, IL 60642
Existing dental buildout with dedicated clinical, laboratory, waiting, break room, and storage areas.
Property Size2,900 SF
Price / SF$327.59
Days on Market381
Property Features for 875 N Milwaukee Ave
General Information
Standard status
Active
Size
2,900 SF
Property subtype
OFFICE
Additional Details
Highway Access
Yes
Amenities
6 operatories
spacious waiting area
lab/sterilization
break room
storage room
Listing Agency:
Joseph Rossi & Associates, Inc (JRA) - Corporate
(708) 289-7678
Listed By:
Sam Tamimi
(708) 289-7678
Source:
Moodyscre
Added: Jul 25, 2025
Changed: Jul 31
Last Checked: Aug 8 at 12:04PM
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 Joseph Rossi & Associates, Inc (JRA) - Corporate
Investment Insights
Based on property information with market context.
Existing 2,900-square-foot dental office configured for medical office use. The layout includes 6 operatories, a spacious waiting area, a lab and sterilization area, a break room, and a storage room. The existing buildout provides a defined clinical arrangement with supporting staff and operational spaces.
The property is located at the intersection of Milwaukee and Racine in Chicago’s River West neighborhood, with access to I-90/94 and a strong residential population in the immediate area. The configuration may suit a dental practice requiring an established operator layout, patient waiting area, laboratory and sterilization functions, and dedicated storage and break space.
The property is located at the intersection of Milwaukee and Racine in Chicago’s River West neighborhood, with access to I-90/94 and a strong residential population in the immediate area. The configuration may suit a dental practice requiring an established operator layout, patient waiting area, laboratory and sterilization functions, and dedicated storage and break space.
Key Highlights
- 2,900‑square‑foot existing dental office
- 6 operatories
- Spacious waiting 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
$62,222
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
6.55%
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%
$1,244,440
$1.2M
Cap Rate 7%
$888,886
$888.9K
Cap Rate 9%
$691,356
$691.4K
Market Conditions
NOI Build-Up for 2,900 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
$111.4K $38.40/SF
− Vacancy
−$28.4K −$9.79/SF
EGI
$83.0K $28.61/SF
− OpEx
−$20.7K −$7.15/SF
NOI
$62.2K $21.46/SF
Area
Chicago, IL
Vacancy
25.50%
Lease Rate
$38.40 /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%
$1,244,440
Cap Rate 7%
$888,886
Cap Rate 9%
$691,356
Alternative Uses
Best Use
Office B
$888.9K
$777.8K – $1.04M
NOI $62,222 @ 7.0% cap · market cap 6.55%
Second Best
Healthcare Medical
$548.8K
$480.2K – $640.3K
NOI $38,419 @ 7.0% cap · market cap 4.04%
Theoretical Best
Office A
$1.37M
$1.20M – $1.60M
NOI $95,714 @ 7.0% cap · market cap 10.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
4,284
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60642, IL
21,687
Population
12,144
Households
1.8
Avg Household Size
33
Median Age
78%
College-Educated
97%
High-School Grad
1.7 sq mi
ZIP Area
12,757
Density / Sq Mi
$141,179
Median Household Income
$90,885
Median Earnings
$2,216
Median Rent
$604,200
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Existing dental buildout with dedicated clinical, laboratory, waiting, break room, and storage areas.
Where is this medical office space located?
The property is located at 875 N Milwaukee Ave Chicago, IL.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 2,900‑square‑foot existing dental office; 6 operatories; Spacious waiting area
