Renovated Office Building with Reserved
For Sale
$1,895,000
250 E Short Street, Lexington, KY 40507
COMMERCIAL - Lexington, KY
Property Size8,102 SF
Lot Size0.12 Acres
Price / SF$233.89
Days on Market47
Property Features for 250 E Short Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
B-2A
Parking
9
Subdivision
Commercial
Directions
S. Limestone inbound to a right on E. Short Street. Property will be on your right.
Standard status
Active
APN
10200000
Size
8,102 SF
Lot size
0.12 Acres
Building Details
Year built
1948
Floors in Building
3
Listing Agency:
Block + Lot Homes
(859) 309-0099
Listed By:
Robert K Lewis · License #275598
(859) 533-9222
Added: Jul 1
Changed: Aug 4
Last Checked: Aug 16 at 2:06PM
MLS# 26015715
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.
250 E. Short Street is an office building renovated in 2018 with modern interior finishes and a split-level entry featuring glass and wood beams. Interior features include hardwood flooring, tall ceilings, and large windows designed to provide abundant natural light. The property is configured as a multi-tenant building with three current tenants, and portions of the space were further improved and customized over the past year to support tenant-specific needs.
Located in downtown Lexington, the building includes a dedicated parking lot on the west side, offering nine reserved parking spaces for tenants and their clients. This parking amenity supports day-to-day access in a downtown setting.
For investors or owner-users evaluating a turnkey asset, the building is currently fully occupied and set up to support multiple office users under one roof. The recent renovation and subsequent tenant-specific improvements provide a foundation for continued operational use, while the nine reserved on-site spaces add convenience for teams and visitors. The offering is presented as an income-producing, multi-tenant opportunity with a stated 6.7% capitalization rate.
Located in downtown Lexington, the building includes a dedicated parking lot on the west side, offering nine reserved parking spaces for tenants and their clients. This parking amenity supports day-to-day access in a downtown setting.
For investors or owner-users evaluating a turnkey asset, the building is currently fully occupied and set up to support multiple office users under one roof. The recent renovation and subsequent tenant-specific improvements provide a foundation for continued operational use, while the nine reserved on-site spaces add convenience for teams and visitors. The offering is presented as an income-producing, multi-tenant opportunity with a stated 6.7% capitalization rate.
Key Highlights
- Renovated in 2018 and built in 1948, offering modern interior finishes and tall ceilings with large windows.
- Fully occupied by three tenants, generating income from day one as a multi‑tenant investment.
- Tenant‑specific improvements were completed within the past year to accommodate the needs of the three current tenants.
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
$90,564
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
4.78%
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%
$1,811,280
$1.8M
Cap Rate 7%
$1,293,771
$1.3M
Cap Rate 9%
$1,006,267
$1.0M
Market Conditions
NOI Build-Up for 8,102 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
$145.8K $18.00/SF
− Vacancy
−$25.1K −$3.10/SF
EGI
$120.8K $14.90/SF
− OpEx
−$30.2K −$3.73/SF
NOI
$90.6K $11.18/SF
Area
Lexington, KY
Vacancy
17.20%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,811,280
Cap Rate 7%
$1,293,771
Cap Rate 9%
$1,006,267
Alternative Uses
Best Use
Office B
$1.29M
$1.13M – $1.51M
NOI $90,564 @ 7.0% cap · market cap 4.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.69M
$1.48M – $1.97M
NOI $118,162 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,854
Businesses Nearby
Explore this area
Business Placement
Demographics for 40507, KY
2,043
Population
1,765
Households
1.2
Avg Household Size
44
Median Age
54%
College-Educated
93%
High-School Grad
0.4 sq mi
ZIP Area
5,108
Density / Sq Mi
$34,543
Median Household Income
$40,826
Median Earnings
$642
Median Rent
$391,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Renovated in 2018 with dedicated on-site reserved parking for tenant and client access, currently fully occupied by three tenants.
Where is this office building located?
The property is located at 250 E Short Street Lexington, KY.
What is the asking price?
The asking price for this property is $1,895,000.
What are key features of this property?
This property features: Renovated in 2018 and built in 1948, offering modern interior finishes and tall ceilings with large windows.; Fully occupied by three tenants, generating income from day one as a multi‑tenant investment.; Tenant‑specific improvements were completed within the past year to accommodate the needs of the three current tenants.
