Highway Frontage Flex
New
For Sale
$3,200,000
1647 S Highway 27, Somerset, KY 42501
Commercial Sale, Somerset, KY
Property Size46,800 SF
Lot Size9.00 Acres
Price / SF$68.38
Days on Market2
Property Features for 1647 S Highway 27
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Subdivision
Commercial
Directions
From E. Highway 80, Make a left onto Hwy 27. Travel approx. 1.7 miles and the property is on the hill on the right.
Standard status
Active
APN
061-3-0-85
Size
46,800 SF
Lot size
9.00 Acres
Building Details
Year built
1970
Listing Agency:
Weichert Realtors Ford Brothers, Inc.
(606) 679-2656
Listed By:
C Matt Ford · License #200610
(606) 271-1691
Added: Aug 21
Last Checked: Aug 22 at 6:06PM
MLS# 26022806
Copyright © 2026 ImagineMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex property at 1647 S Highway 27 includes approximately 9 acres and 46,800 square feet of finished space distributed among several buildings. Improvements include a 21,200-square-foot solid-masonry industrial building, an 11,000-square-foot metal commercial building, a 6,600-square-foot retail/sales building constructed in 2004, a 4,000-square-foot commercial building, and a 4,000-square-foot metal garage. The buildings feature slab foundations and gable-style roofs, with heating provided by heat pump and gas systems. Several structures also contain office or restroom areas.
The property fronts Highway 27 in Somerset, Kentucky, providing a substantial commercial site along the corridor. The acreage supports existing building operations along with additional parking, expansion, or redevelopment possibilities. Zoning is designated C.
The property fronts Highway 27 in Somerset, Kentucky, providing a substantial commercial site along the corridor. The acreage supports existing building operations along with additional parking, expansion, or redevelopment possibilities. Zoning is designated C.
Key Highlights
- Approximately 9 acres with 46,800 square feet of finished building space
- Highway 27 frontage at 1647 S Highway 27, Somerset, KY 42501
- 21,200 SF solid‑masonry industrial building
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$275,838
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.62%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,516,760
$5.5M
Cap Rate 7%
$3,940,543
$3.9M
Cap Rate 9%
$3,064,867
$3.1M
Market Conditions
NOI Build-Up for 46,800 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$348.2K $7.44/SF
− Vacancy
−$23.7K −$0.51/SF
EGI
$324.5K $6.93/SF
− OpEx
−$48.7K −$1.04/SF
NOI
$275.8K $5.89/SF
Area
Pulaski County, KY
Vacancy
6.80%
Lease Rate
$7.44 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,516,760
Cap Rate 7%
$3,940,543
Cap Rate 9%
$3,064,867
Alternative Uses
Best Use
Flex RnD
$4.78M
$4.18M – $5.58M
NOI $334,742 @ 7.0% cap · market cap 10.46%
Second Best
Warehouse
$3.94M
$3.45M – $4.60M
NOI $275,838 @ 7.0% cap · market cap 8.62%
Theoretical Best
Specialty Retail
$7.97M
$6.98M – $9.30M
NOI $558,117 @ 7.0% cap · market cap 17.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
373
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 42501, KY
18,047
Population
8,039
Households
2.2
Avg Household Size
43
Median Age
17%
College-Educated
84%
High-School Grad
199.7 sq mi
ZIP Area
90
Density / Sq Mi
$49,449
Median Household Income
$38,121
Median Earnings
$808
Median Rent
$131,400
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - C-zoned commercial property with multiple finished buildings supporting industrial, warehouse, retail, and business operations.
Where is this flex space located?
The property is located at 1647 S Highway 27 Somerset, KY.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Approximately 9 acres with 46,800 square feet of finished building space; Highway 27 frontage at 1647 S Highway 27, Somerset, KY 42501; 21,200 SF solid‑masonry industrial building
