Industrial real estate FAQ: 100 questions
Direct answers to the most common questions about warehouses, leases, cap rates, selling, diligence, Illinois taxes and zoning, and the Chicago market.
Illinois · Industrial investment sales
Chicagoland Industrial Investment Sales
I specialize in the investment sales of industrial assets ranging from 10,000 to 100,000 square feet across Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will counties in Illinois.
The guides below are free resources I maintain for owners, buyers, and tenants in this market: the questions to ask, the records to check, and the official offices to check them with. Search the guides for a term, a county, or a topic.
Thinking of selling? Here's how I work
A first conversation is confidential and starts with your building, leases, and timing. I focus on industrial investment sales of 10,000 to 100,000 square feet across the nine Illinois counties above, with Marcus & Millichap.
Start with the property's operating facts and your goals, then organize the documents buyers will review and discuss pricing, confidentiality, and the sale process. The selling guide explains what to prepare before we talk.
Chicago industrial news
- CBRE reps seller in $2.75 million sale of vacant industrial building in Chicago’s Fulton Market neighborhood
- More leasing activity but more landlord concessions, too, in Chicago industrial market
- Lee & Associates Brokers 40K-SF Blue Island Truck Terminal Lease
- Chicago logistics investor eyes more local acquisitions as industrial sales rebound
- I-80, I-55 corridors continue to drive Chicago industrial market
- Vacant Plainfield industrial building getting $13M makeover for Class A status
- California Investor Scoops Up Amazon Warehouse: The Chicago Deal Sheet
- Stockbridge shells out $87M for suburban Chicago Amazon warehouse
- Prologis Acquires 69 Acres For 1M SF Chicago-Area Industrial Development
- Prologis plans major warehouse near Chicago
Where to start
- Thinking about selling? The selling guide covers who buys buildings in this size range, how they underwrite, what to assemble, and how a sale runs.
- Buying for your business or as an investment? Pair the building checklist with the purchase-diligence guide; suitability and value are separate questions.
- Leasing space? Compare total occupancy cost on the same basis, not advertised rent.
- Researching a specific county? The nine-county hub links each county’s planning, zoning, parcel, and assessment offices.
Choosing the best industrial real estate broker in Chicagoland
Owners often start by searching for the best commercial real estate broker in Chicago. The best broker for one building is not the best for every building: it depends on the property type, size, location, and what you want from the sale. These are the questions worth asking any broker, including me.
How do I find the best commercial real estate broker in Chicago?
Look for a broker who regularly closes sales of your property type, in your size range, in your county. Ask for recent comparable closings rather than total career volume, ask who bought those buildings, and confirm the broker’s Illinois license through the Illinois Department of Financial and Professional Regulation.
What makes the best broker for selling an industrial building?
- Industrial investment sales focus. Selling a building to an investor or owner-user is different work from leasing space.
- Buyer reach. Access to private investors, 1031 exchange buyers, and owner-users who buy buildings of your size.
- Pricing you can check. A recommended price supported by comparable sales, rent analysis, and the way buyers will underwrite the building.
- A written process. A marketing plan, confidentiality steps for tenants and employees, and regular reporting on activity and offers.
What should I ask a commercial real estate broker before signing a listing agreement?
- Which similar buildings have you sold in the last few years, at what prices, and to which kinds of buyers?
- How did you arrive at the recommended price, and what would change it?
- Who will market the property, and how will you protect confidentiality?
- What are the fee, term, and exclusions in the listing agreement?
Do I need an investment sales broker or a leasing broker?
If you want to sell the building, whether it is leased or vacant, an investment sales broker prices and markets it to buyers. If you want to fill vacant space or find space for your business, a leasing or tenant-representation broker handles that. Some sales of vacant buildings attract both investors and owner-users, so ask how a broker reaches each.
How does Pavlo Rospopa work with industrial owners?
I focus on investment sales of industrial buildings from 10,000 to 100,000 square feet in Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will counties, with Marcus & Millichap. A first conversation is confidential and covers the building, its leases, and your timing; read the selling guide first if you are preparing.
Contact Pavlo Rospopa
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Guides
Free, practical guides I maintain for owners, buyers, and tenants. Browse all guides or search every section.
Industrial property
Investor Q&A
What experienced industrial buyers ask about pricing, functionality, tenants, diligence, Illinois taxes, debt, and exit, answered without hype.
Selling an industrial property
Buyer types, underwriting, what drives value, the document checklist, pricing, and the sale process from preparation to closing.
Building types & specifications
Warehouse, light industrial, manufacturing, flex, cold storage, truck terminals, and IOS, plus what each specification means.
Industrial due diligence
Environmental and physical assessments, title and survey, zoning and permits, utilities, and turning findings into price or repairs.
Submarkets & logistics corridors
O’Hare, I-55, I-80/Joliet, I-88, I-90, North and South Cook, the city’s corridors, and the outer counties.
Nine Illinois counties
Authorities, assessors, and official sources for Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will.
Property taxes on industrial real estate
Assessment, equalization, levies, appeals, Cook County incentive classes, and how taxes enter underwriting and leases.
Evaluating industrial buildings
How to verify clear height, loading, truck court, slab, power, fire protection, access, and environmental history.
Transactions, research, and terms
Investment & purchase diligence
Income, expenses, financing, downside cases, and the reviews before closing, with cap-rate and debt-service calculators.
Comparing commercial leases
Gross vs. net terms, total occupancy cost over the term, a lease-review checklist, and a credible move-in schedule.
Researching Chicago commercial property
How to verify jurisdiction, PINs, zoning, building records, and taxes before comparing a property with others.
Industrial & investment glossary
Plain-English definitions of building, lease, underwriting, and Illinois records terms, with a live filter.
Common questions
- What is industrial real estate?
- What is a triple-net (NNN) lease?
- What is a good cap rate for industrial property?
- How long does it take to sell an industrial property?
- What is the Cook County Class 6b incentive?
- Why is Chicago a major industrial and logistics hub?
- See all 100 questions
- Browse the editorial perspectives and member board
Official starting points
- City of Chicago zoning map and Department of Buildings: city zoning, permits, and inspections.
- Cook County Assessor and Cook County Treasurer: assessment and tax-bill research serve different purposes.
- Assessment offices for all nine counties, listed in the county hub.
- Chicago Metropolitan Agency for Planning: regional planning context, not property-specific verification.
Scope. “Chicago real estate” here means commercial and industrial property, not homes. The nine counties are the ones I work in, not an official definition of Chicagoland; Indiana and Wisconsin are outside this site. These pages are educational. They are not listings, appraisals, or legal, tax, engineering, or investment advice.
Owner questions: income, costs and risk
Understand your operating statement, reduce waste, budget capital and evaluate taxes and insurance before the next lease, refinance or sale.
How is net operating income calculated for commercial property?
Calculate commercial property NOI from rent, vacancy, recoveries and expenses. A worked example separates debt, capital costs and reserves for Illinois owners.
DCF explained for commercial real estate owners
Understand commercial property discounted cash flow, discount rates, exit caps, NPV and IRR with an illustrative hold-period example and downside checks.
How can owners reduce commercial building operating costs?
Practical Illinois owner controls for energy, maintenance, utilities, service bids and CAM, with ComEd/Nicor resources and links to insurance and tax guides.
Commercial property insurance: an owner renewal checklist
Illinois owner guide to building insurance, loss of rents, liability, flood exclusions, replacement cost, coinsurance, deductibles and premium review.
How to budget expenses, reserves and capital for a commercial building
Build an owner operating budget, normalize expense benchmarks, plan reserves, separate capex from opex, and prepare CPA questions on depreciation and 1031.
Commercial property owner questions: income, costs and decisions
Plain-English answers for Illinois commercial owners on NOI, DCF, expense cuts, property tax appeals, CAM, insurance, reserves, debt and when to sell.