Calculate cap rates and net operating income for commercial properties in Illinois. Compare your results against Illinois's gateway market benchmarks sourced from CBRE H2 2025.
Chicago is a major gateway market and the dominant Midwest CRE hub. The Chicago metro's industrial market (particularly O'Hare/I-55/I-80 corridors) is among the most liquid in the country. Multifamily in urban Chicago and suburban submarkets attracts significant institutional capital. High property taxes are a structural challenge — Illinois has among the highest effective property tax rates, which are factored into cap rate pricing.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.5% | 6.0% |
| Industrial | 5.0% | 6.5% |
| Retail | 5.5% | 7.5% |
| Office | 6.5% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Illinois cap rates range from 4.5–6.0% for multifamily, 5.0–6.5% for industrial, 5.5–7.5% for retail, and 6.5–9.5% for office. Chicago's industrial corridors (O'Hare, I-55, I-80) are among the tightest in the Midwest. High Illinois property taxes are typically reflected in wider cap rates versus comparable coastal markets.
Illinois has among the highest effective property tax rates in the US, with Cook County assessments sometimes exceeding 2–3% of property value annually. This directly reduces NOI and pushes cap rates higher compared to states with lower tax burdens, all else equal. Investors underwriting Illinois properties must carefully model tax exposure as a core assumption.
Chicago sits at the center of the US rail and interstate highway network, serving as the nation's freight crossroads. The O'Hare submarket, Joliet/Elwood intermodal hub, and I-80 corridor collectively handle massive logistics volume. This makes Chicago industrial one of the most liquid and in-demand markets in the country for institutional investors.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.