To price asking rent for an industrial or office building in Lake County, Illinois, start with what comparable buildings have actually signed in the last 12 to 18 months, not what they are asking. Adjust for your building’s size, condition, specifications, and location, convert everything to the same lease structure, and set the asking rent high enough to leave room for the concessions you expect to give while still hitting your target effective rent. Then watch the market’s response in the first 30 to 60 days and adjust.
This guide covers Lake County, Illinois, including Waukegan, Gurnee, Libertyville, Mundelein, Vernon Hills, Lincolnshire, Lake Forest, Lake Bluff, and Buffalo Grove.
Know the three numbers
- Market rent. What similar space is actually leasing for today.
- Asking rent. The number on the listing, set to attract tours and leave room to negotiate.
- Bottom-line effective rent. The lowest rent you will accept after free rent, improvement allowances, and commissions are counted.
Owners who skip the third number end up negotiating against themselves.
Step 1: Find real comparables
Asking rents on LoopNet and Crexi tell you what your competition hopes to get. Signed leases tell you what tenants actually pay. Brokers who are active in the county track signed deals, including the concessions that never show up on a listing. Look for leases that match on:
- Property type and size of space
- Submarket and highway access
- Age and condition
- Lease date, ideally within the last year
For current county trends, check the daily-updated RFP Chicagoland Commercial Real Estate Index.
Step 2: Adjust for what tenants pay for
Industrial and flex
- Size. Smaller units usually command a higher rent per square foot than large ones.
- Clear height. Higher clear heights support more storage and higher rent.
- Loading. The count of dock-high and drive-in doors, and truck court depth.
- Power. Three-phase, 480-volt service matters to manufacturers.
- Office finish. More office raises the rate but narrows the tenant pool.
- Yard. Outdoor storage and trailer parking add value.
- Access. Proximity to I-94, the Tri-State, Route 41, Route 53, and Route 60.
Office
- Building class and condition of the lobby, common areas, and restrooms
- Suite condition, especially whether it is move-in ready
- Parking ratio and covered parking
- Amenities such as a fitness center, conference center, or food service
- Location on the Lake Cook, Route 22, and Milwaukee Avenue corridors, and Metra access
Step 3: Match the lease structure
Lake County industrial space is commonly quoted on a net basis, with the tenant paying base rent plus a share of property taxes, insurance, and operating costs. Office space may be quoted full-service gross or net. A net rent and a gross rent are not comparable until you add the expenses back.
Property taxes deserve special attention. They vary by township and municipality, and tenants compare total occupancy cost, not base rent. A building with a high tax bill may need a lower base rent to compete with a similar building in a lower-tax town.
Step 4: Price for the concessions you will give
Effective rent is what matters to an owner. Two leases at the same face rent can produce very different returns once free rent, tenant improvement allowances, and commissions are counted. Decide in advance:
- How many months of free rent you would offer for a longer term
- What improvement allowance the space needs to lease
- The annual rent increase you want, commonly a fixed percentage
- Your minimum acceptable term
Then set the asking rent so you can offer those concessions and still hit your bottom line.
Step 5: Read the market’s response
- Plenty of tours but no proposals: the price is usually the issue.
- No tours at all: the marketing, the presentation, or the asking rent is wrong.
- Several proposals quickly: you may have priced too low for the next space.
Reassess after the first few weeks rather than waiting six months. Each month of vacancy is income you do not get back. If the space is not moving, see our guide on getting a vacant building leased faster.
Get a second opinion on your number
The fastest way to a realistic asking rent is a broker opinion based on signed Lake County leases. The Van Vlissingen and Co. landlord representation team can pull comparables for your building and help you set a number that leases.
Frequently asked questions
How do I find out what comparable buildings in Lake County, Illinois are renting for?
Listing sites show asking rents. Signed lease comparables, including free rent and improvement allowances, come from brokers active in the county and from paid databases such as CoStar.
Is industrial rent in Lake County quoted gross or net?
Industrial space is commonly quoted net, with the tenant paying a share of taxes, insurance, and operating costs on top of base rent. Office space may be quoted gross or net.
Why do small industrial spaces rent for more per square foot?
There are many more small tenants competing for a limited supply of small units, and fixed costs such as offices, restrooms, and loading are spread over fewer square feet.
What is effective rent?
Effective rent is the average rent an owner actually receives over the lease term after free rent, tenant improvement allowances, and other concessions.
How often should I adjust my asking rent?
Review the market response every few weeks. If a well-marketed space gets tours but no proposals within 30 to 60 days, the asking rent is likely too high.