Commercial Real Estate Market in Palatine, IL
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
74 active listings and 1,018 off-market properties in Palatine, IL. Commercial property asks $202/SF to buy and $23.53/SF/Yr to lease.
Market Trends
Palatine, IL spans 20.1 square miles in Cook County, Illinois. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Palatine, IL runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Vacancy Rate % in Midwest region
Retail
Retail vacancy in Palatine, IL runs 6.3% across the Midwest region in 2025, down from 8% in 2020.
Vacancy Rate % in Midwest region
Industrial
Industrial vacancy in Palatine, IL runs 4.9% across the Midwest region in 2025, up from 4.4% in 2019. Nearly 1.6x the 2022 low of 3.1%.
Vacancy Rate % in Midwest region
Multifamily
Multifamily vacancy in Palatine, IL runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Vacancy Rate % in Midwest region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 63.1%
- Planned_development 27.6%
- Commercial 5.5%
- Industrial 2.5%
Largest Zones share of zoned land by district
Single Family Residential
Planned Unit Development
Single Family Residential
General Business
Single Family Residential
Palatine, IL zones 8,942 acres across 14 districts. Commercial zoning covers 5.5% of zoned land, residential 63.1% and industrial 2.5%. The largest single district is Single Family Residential at 37.6%. For commercial buyers the practical constraint is that only 8% of land carries a commercial or industrial designation.
Single Family Residential (R-2)
The intent of this district is to promote single family dwellings
Market overview
Demographics & Economy
Palatine, IL has 77,029 residents in 30,992 households. Density runs 3,830 people per square mile. Median household income here is $102,158 and median gross rent $1,476 a month.
77,029
Population
30,992
Households
2.5
Avg Household Size
40
Median Age
51%
College-Educated
91%
High-School Grad
20.1 sq mi
ZIP Area
3,830
Density / Sq Mi
$102,158
Median Household Income
$55,071
Median Earnings
$1,476
Median Rent
$369,112
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Tower Lakes | — | — |
| Rolling Meadows | — | $68.67 |
| Arlington Hts | — | — |
| Long Grove | — | — |
Commercial property in Palatine, IL asks $202/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Palatine?
Commercial property in Palatine, IL asks an average of $202 per square foot.
How much does it cost to lease commercial space in Palatine?
Asking lease rates in Palatine, IL average $23.53 per square foot per year.
What zoning applies to commercial property in Palatine?
Palatine, IL zones 8,942 acres across 14 districts, of which 5.5% is commercial and 2.5% industrial. The largest single district is Single Family Residential at 37.6% of zoned land. The intent of this district is to promote single family dwellings Residential zoning covers 63.1% and open space 0%.
Where does Realmo's Palatine market data come from?
Realmo compiles Palatine, IL figures from 8 recent recorded sales, 41 active sale listings, 33 active lease listings, 1,018 tracked off-market properties, the current Palatine zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 41 active for-sale and 33 active for-lease listings in Palatine, IL. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 8,942 zoned acres across 14 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at Midwest region level, retail vacancy is reported at Midwest region level and industrial vacancy is reported at Midwest region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
