What your commercial property is worth in Lake County, Illinois depends on what buyers would pay for its income, or for its use. For a leased building, value is roughly its net operating income divided by the cap rate buyers expect: a building earning $160,000 a year in net income at a 7.5 percent cap rate is worth about $2.1 million. For a vacant or owner-occupied building, value comes mostly from recent sales of similar buildings, measured per square foot. The fastest way to get a reliable number is a broker opinion of value based on recent Lake County sales, which is often free if you are considering a sale. The county’s assessed value is a poor guide on its own.
This article covers Lake County, Illinois, north of Chicago, from Waukegan and Gurnee to Libertyville, Vernon Hills, Lincolnshire, Deerfield, and Lake Forest. It is general market information, not an appraisal.
Three ways buyers value commercial property
- Income. Net operating income divided by a market cap rate. This drives value for leased investment properties.
- Comparable sales. Recent sales of similar buildings nearby, per square foot. This drives value for vacant buildings, owner-user buildings, and small properties.
- Replacement cost. What it would cost to buy the land and build the building today, less wear and age. This sets a ceiling for older buildings and matters for newer ones.
A quick income estimate
| Example: 20,000 square foot leased industrial building | Amount |
|---|---|
| Net operating income after expenses, reserves, and management | $160,000 |
| Market cap rate | 7.5 percent |
| Estimated value ($160,000 divided by 0.075) | About $2.13 million |
| Price per square foot | About $107 |
The cap rate is where most of the judgment lies. A strong tenant on a long lease earns a lower cap rate and a higher value. A short remaining lease, a weaker tenant, or deferred maintenance earns a higher cap rate and a lower value. Matthews reported an average Chicago industrial cap rate of 7.47 percent and an average price of about $108 per square foot in the third quarter of 2026. See cap rates for industrial and office buildings in the Chicago suburbs.
Value by property type in Lake County, Illinois
- Industrial. The most liquid property type. Lee and Associates reported Lake County industrial vacancy of 4.88 percent in the third quarter of 2026. Small and mid-size buildings often sell above the metro average per square foot because owner-users compete with investors. See what industrial space costs in Lake County.
- Office. With suburban office vacancy near 28 percent, value depends heavily on occupancy and lease term. A well-leased building is valued on income. A largely vacant building is often valued on price per square foot, land, or conversion potential. See how to value a multi-tenant office building.
- Retail. Tenant strength, lease term, traffic counts, visibility, and parking drive value. National tenants on long leases trade at the lowest cap rates.
- Land. Zoning, utilities, access, and what can be built drive value, usually measured per acre or per buildable square foot.
Why the county assessment is not your value
Lake County, Illinois assesses property at one-third of the assessor’s estimate of market value, so multiplying the assessed value on your tax bill by three gives the assessor’s estimate. That estimate is built for taxes, not for sale. It is based on mass appraisal, often lags the market, and does not know your leases, tenant credit, or building condition. If the assessor’s figure is well above what your building would sell for, an assessment appeal may be worth exploring with a property tax attorney.
What raises or lowers your number
Lease term and tenant credit. Long leases with strong tenants add value. Near-term expirations subtract it.- Rent compared with market. Below-market rent can mean upside for a buyer. Above-market rent may not hold at renewal.
- Property taxes. High taxes reduce net income and value, especially on net leases where tenants compare total occupancy cost.
- Building condition. Roof age, paving, and mechanical systems show up as price reductions.
- Location. Access to I-94, Route 41, and Route 53 and proximity to the Cook County line matter.
Appraisal or broker opinion of value?
A certified appraisal is required for loans, estates, tax appeals, and some partnership or family transactions, and typically costs a fee and takes a few weeks. A broker opinion of value is faster, usually free when you are weighing a sale, and reflects what buyers are paying right now, including off-market interest an appraisal may not capture. Many owners start with a broker opinion and order an appraisal when a lender, attorney, or court needs one. If you are deciding what to do next, see whether to sell or hold an industrial building.
Get a value for your property
The Van Vlissingen and Co. investment sales team sells industrial, office, retail, and land across Lake County, Illinois, the northern and northwest suburbs, and Southern Wisconsin, and can give you a confidential opinion of value based on recent closed sales and active buyer demand. For current market conditions, see the daily-updated RFP Chicagoland Commercial Real Estate Index.
Frequently asked questions
How do I find out what my commercial property is worth?
Estimate net operating income and divide by a market cap rate, compare recent sales of similar buildings per square foot, or ask a local broker for an opinion of value based on recent closed sales.
Is my county assessed value the same as market value?
No. In Lake County, Illinois, assessed value is one-third of the assessor’s estimate of market value, and that estimate often lags the market and does not reflect your leases or condition.
How much does a commercial appraisal cost?
It varies by property size and complexity and is usually a paid engagement that takes a few weeks. A broker opinion of value is often free if you are considering a sale.
What cap rate should I use for my building?
It depends on property type, tenant, lease term, and condition. Matthews reported an average Chicago industrial cap rate of 7.47 percent in the third quarter of 2026. Office and riskier properties trade at higher cap rates.
How are vacant commercial buildings valued?
Mostly on recent sales of similar buildings per square foot, land value, and what an owner-user or redeveloper would pay, because there is little or no income to capitalize.