Versatile Office/Warehouse on Corner
For Sale
Contact for pricing
305 Forest Dr, Highland, IL 62249
2,196 SF office/warehouse with flexible space and industrial zoning.
Property Size2,300 SF
Lot Size2.12 Acres
Price / SF$312.61
Days on Market704
Property Features for 305 Forest Dr
General Information
Standard status
Active
Size
2,300 SF
Class
C
Lot size
2.12 Acres
Property subtype
Office, Industrial
Zoning
I
Building Details
Year Built
2009
Listing Agency:
REAL BROKER LLL
5749405
Listed By:
Darin Revermann · License #Il 475.179348
Source:
Crexi
Added: Sep 6, 2024
Changed: Aug 9
Last Checked: Aug 9 at 7:50PM
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 REAL BROKER LLL
Investment Insights
Based on property information with market context.
This 2,196 SF office/warehouse property provides a versatile space suitable for various business needs. The 1,296 SF office area includes a private office, reception area, conference room, showroom, and mechanical room. It also features one ADA-compliant restroom and a convenient rear entrance. The 900 SF warehouse portion includes a 15x12 overhead door, 16-ft ceilings, heated floors, and a rear entrance door. The building is equipped with a backup generator. Situated on a 2.12-acre corner lot, the property is zoned as Industrial C-3 Highway Business District. It includes a large fenced-in area behind the building and a 40x30 carport. The industrial zoning allows flexibility for future development and is suitable for many uses, including operating an existing business with potential storage rental options.
Key Highlights
- Owner financing available.
- Versatile office/warehouse space: 1,296 SF office and 900 SF warehouse.
- Located on a large 2.12‑acre corner lot with Industrial C‑3 zoning, offering development potential.
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
$36,432
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
5.07%
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%
$728,640
$728.6K
Cap Rate 7%
$520,457
$520.5K
Cap Rate 9%
$404,800
$404.8K
Market Conditions
NOI Build-Up for 2,300 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
$55.2K $24.00/SF
− Vacancy
−$6.6K −$2.88/SF
EGI
$48.6K $21.12/SF
− OpEx
−$12.1K −$5.28/SF
NOI
$36.4K $15.84/SF
Area
Madison County, IL
Vacancy
12.00%
Lease Rate
$24.00 /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%
$728,640
Cap Rate 7%
$520,457
Cap Rate 9%
$404,800
Alternative Uses
Best Use
Office B
$520.5K
$455.4K – $607.2K
NOI $36,432 @ 7.0% cap · market cap 5.07%
Second Best
Warehouse
$164.8K
$144.2K – $192.3K
NOI $11,539 @ 7.0% cap · market cap 1.60%
Theoretical Best
Office A
$626.9K
$548.6K – $731.4K
NOI $43,884 @ 7.0% cap · market cap 6.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
625
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 62249, IL
16,052
Population
7,317
Households
2.2
Avg Household Size
42
Median Age
36%
College-Educated
96%
High-School Grad
88.7 sq mi
ZIP Area
181
Density / Sq Mi
$88,986
Median Household Income
$53,122
Median Earnings
$779
Median Rent
$220,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Cygan & Delaney Catering Inc — 808 Broadway A, Highland, IL 62249
Frequently Asked Questions
What type of property is this?
Flex space - 2,196 SF office/warehouse with flexible space and industrial zoning.
Where is this flex space located?
The property is located at 305 Forest Dr Highland, IL.
What is the asking price?
The asking price for this property is $719,000.
What are key features of this property?
This property features: Owner financing available.; Versatile office/warehouse space: **1,296 SF office and 900 SF warehouse.**; Located on a **large 2.12‑acre corner lot** with Industrial C‑3 zoning, offering development potential.
