Two-Story Office Building with
For Sale
$1,200,000
9999 W Lincoln Highway, Frankfort, IL 60423
Two-story office building with finished basement and flexible layout.
Property Size8,400 SF
Price / SF$142.86
Days on Market841
Property Features for 9999 W Lincoln Highway
General Information
Standard status
Active
Size
8,400 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
2007
Listing Agency:
RE/MAX CHARLOTTETOWN REALTY
(647) 545-9507
Listed By:
Stephen Harris · License #475099011
(647) 545-9507
Source:
Exitrealty
Added: Apr 19, 2024
Changed: Jul 6
Last Checked: Aug 7 at 3:15AM
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 RE/MAX CHARLOTTETOWN REALTY
Investment Insights
Based on property information with market context.
This two-story office building features finished spaces on both floors and a mostly finished full basement. The first floor includes a reception/waiting area, six private offices, a large open area with workstations, a conference room, a copy room, two bathrooms, and an elevator. The second story, accessible via a separate entrance, contains three private offices, a large open area with workstations, and a bathroom, offering the potential for separate rental. The full basement is mostly finished and includes three private offices, a kitchen, a conference room, a computer room, and ample storage space. There is also an area in the basement that could be converted from storage to additional workspace. The property has a total size of 8400 square feet.
Key Highlights
- Two‑story building with a separate entrance for the second floor, allowing for potential rental income.
- Finished basement with offices, kitchen, conference room, computer room, and storage, offering additional workspace.
- First floor features a reception area, 6 private offices, a large open area with workstations, a conference room, a copy room, 2 bathrooms, and an elevator.
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
$100,911
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
8.41%
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%
$2,018,220
$2.0M
Cap Rate 7%
$1,441,586
$1.4M
Cap Rate 9%
$1,121,233
$1.1M
Market Conditions
NOI Build-Up for 8,400 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
$189.5K $22.56/SF
− Vacancy
−$55.0K −$6.54/SF
EGI
$134.5K $16.02/SF
− OpEx
−$33.6K −$4.00/SF
NOI
$100.9K $12.01/SF
Area
Will County, IL
Vacancy
29.00%
Lease Rate
$22.56 /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%
$2,018,220
Cap Rate 7%
$1,441,586
Cap Rate 9%
$1,121,233
Alternative Uses
Best Use
Office B
$1.44M
$1.26M – $1.68M
NOI $100,911 @ 7.0% cap · market cap 8.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.91M
$1.67M – $2.22M
NOI $133,358 @ 7.0% cap · market cap 11.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
77
Businesses Nearby
Explore this area
Business Placement
Demographics for 60423, IL
32,784
Population
11,494
Households
2.9
Avg Household Size
42
Median Age
48%
College-Educated
97%
High-School Grad
37.9 sq mi
ZIP Area
865
Density / Sq Mi
$137,651
Median Household Income
$63,686
Median Earnings
$1,455
Median Rent
$376,500
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?
Office building - Two-story office building with finished basement and flexible layout.
Where is this office building located?
The property is located at 9999 W Lincoln Highway Frankfort, IL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Two‑story building with a separate entrance for the second floor, allowing for potential rental income.; Finished basement with offices, kitchen, conference room, computer room, and storage, offering additional workspace.; First floor features a reception area, 6 private offices, a large open area with workstations, a conference room, a copy room, 2 bathrooms, and an elevator.
