Downtown Office
For Sale
$3,790,000
277 E High Street, Lexington, KY 40507
Commercial Sale, Lexington, KY
Property Size12,684 SF
Lot Size0.39 Acres
Price / SF$298.80
Days on Market148
Property Features for 277 E High Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
B-2B
Rooms
Basement
Parking
34
Basement
Finished, Walk-Up Access
Subdivision
Downtown
Directions
High Street cross over Rose Street. Building is on your right.
Standard status
Active
APN
14636600
Size
12,684 SF
Lot size
0.39 Acres
Utilities
Utilities
Cable Available
Heating system
Zoned, Electric (Heating), Heat Pump (Heating)
Cooling system
Zoned, Heat Pump, Electric
Building Details
Year built
1975
Floors in Building
3
Building materials
Steel Frame, Brick, Concrete, Stucco
Roof type
Shingle
Listing Agency:
Bluegrass Sotheby's International Realty
(859) 268-0099
Listed By:
Christopher Mitchell · License #197495
(859) 321-2898
Added: Apr 22
Changed: Sep 12
Last Checked: Sep 16 at 11:06AM
MLS# 26008699
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 12,684-square-foot office building occupies a 0.39-acre site at 277 E High Street in Lexington. The layout includes 24 offices, 8 half baths, 2 break areas, a training room, server room, file room, 2 copy rooms, and a reception area. A basement provides additional building space, while steel frame, brick, concrete, and stucco construction support the existing structure. Heating and cooling are provided through zoned electric heat pump systems.
The property is positioned on a high-traffic corridor in downtown Lexington, with onsite parking and convenient access to the District Courts, City Hall, dining, coffee shops, and banks. Built in 1975, the building also includes cable availability and a shingle roof.
The property is positioned on a high-traffic corridor in downtown Lexington, with onsite parking and convenient access to the District Courts, City Hall, dining, coffee shops, and banks. Built in 1975, the building also includes cable availability and a shingle roof.
Key Highlights
- 12,684‑square‑foot office building on a 0.39‑acre site
- 24 offices with 8 half baths, 2 break areas, and a reception area
- Includes training room, server room, file room, and 2 copy rooms
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
$141,782
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
3.74%
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%
$2,835,640
$2.8M
Cap Rate 7%
$2,025,457
$2.0M
Cap Rate 9%
$1,575,356
$1.6M
Market Conditions
NOI Build-Up for 12,684 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
$228.3K $18.00/SF
− Vacancy
−$39.3K −$3.10/SF
EGI
$189.0K $14.90/SF
− OpEx
−$47.3K −$3.73/SF
NOI
$141.8K $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%
$2,835,640
Cap Rate 7%
$2,025,457
Cap Rate 9%
$1,575,356
Alternative Uses
Best Use
Office B
$2.03M
$1.77M – $2.36M
NOI $141,782 @ 7.0% cap · market cap 3.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.64M
$2.31M – $3.08M
NOI $184,988 @ 7.0% cap · market cap 4.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
3,951
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
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Professional workspace with private offices, support rooms, and dedicated onsite parking in central Lexington.
Where is this office building located?
The property is located at 277 E High Street Lexington, KY.
What is the asking price?
The asking price for this property is $3,790,000.
What are key features of this property?
This property features: 12,684‑square‑foot office building on a 0.39‑acre site; 24 offices with 8 half baths, 2 break areas, and a reception area; Includes training room, server room, file room, and 2 copy rooms
