Vaulted Ceiling Office Condo
For Sale
$220,000
Pending
3131 Custer Drive, Lexington, KY 40517
COMMERCIAL - Lexington, KY
Property Size1,152 SF
Lot Size0.05 Acres
Days on Market94
Property Features for 3131 Custer Drive
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
P-1
Parking features
Open
Basement
Crawl Space
Subdivision
Park Hills
Directions
From Man O' War Blvd turn on Pimlico Pkwy. Turn right on Custer Dr and the office complex will be on the left close to the end of the street
Standard status
Pending
APN
20054120
Size
1,152 SF
Lot size
0.05 Acres
Utilities
Sewer type
Public Sewer
Building Details
Year built
1987
Floors in Building
1
Building materials
Vinyl Siding
Roof type
Shingle
Listing Agency:
The Brokerage
(859) 983-7365
Listed By:
Chad Bowman
(859) 396-5256
Added: May 21
Changed: Aug 12
Last Checked: Aug 22 at 4:06PM
MLS# 26011805
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.
Offered for sale is a single-story professional office suite within a quiet office condo community. The suite is approximately 1,152 square feet and features vaulted ceilings that create an open, polished first impression. Inside, there are six enclosed private offices designed to support focused work, along with two restrooms for staff and client convenience. The layout also includes two private entrances plus a hallway door, allowing the space to operate as two fully independent offices if desired. Existing furniture can stay with an acceptable offer if a turnkey setup is preferred.
Located at 3131 Custer Drive in Lexington, Kentucky 40517, the property is part of a dedicated office condo environment. That setting can help provide a straightforward day-to-day experience for clients and occupants who want a professional, low-disruption atmosphere.
The configuration is well-suited for a range of professional uses that benefit from multiple private offices and flexible access. Whether you’re an established practice looking for a clean, ready-to-occupy space, or a growing firm that wants room for separate work areas, the suite’s enclosed office setup and dual-entrance design offer practical options for staffing and workflow.
Located at 3131 Custer Drive in Lexington, Kentucky 40517, the property is part of a dedicated office condo environment. That setting can help provide a straightforward day-to-day experience for clients and occupants who want a professional, low-disruption atmosphere.
The configuration is well-suited for a range of professional uses that benefit from multiple private offices and flexible access. Whether you’re an established practice looking for a clean, ready-to-occupy space, or a growing firm that wants room for separate work areas, the suite’s enclosed office setup and dual-entrance design offer practical options for staffing and workflow.
Key Highlights
- Versatile 1,152 sq ft professional office suite for various businesses or investment.
- Six private offices offer dedicated workspace.
- Two private entrances allow operation as two independent offices.
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
$14,399
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
6.54%
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%
$287,980
$288.0K
Cap Rate 7%
$205,700
$205.7K
Cap Rate 9%
$159,989
$160.0K
Market Conditions
NOI Build-Up for 1,152 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
$22.1K $19.20/SF
− Vacancy
−$2.9K −$2.53/SF
EGI
$19.2K $16.67/SF
− OpEx
−$4.8K −$4.17/SF
NOI
$14.4K $12.50/SF
Area
ZIP 40517
Vacancy
13.20%
Lease Rate
$19.20 /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%
$287,980
Cap Rate 7%
$205,700
Cap Rate 9%
$159,989
Alternative Uses
Best Use
Office B
$205.7K
$180.0K – $240.0K
NOI $14,399 @ 7.0% cap · market cap 6.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$238.9K
$209.0K – $278.7K
NOI $16,722 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
521
Businesses Nearby
Explore this area
Business Placement
Demographics for 40517, KY
37,751
Population
18,306
Households
2.1
Avg Household Size
33
Median Age
41%
College-Educated
92%
High-School Grad
6.2 sq mi
ZIP Area
6,089
Density / Sq Mi
$51,778
Median Household Income
$35,010
Median Earnings
$1,092
Median Rent
$196,300
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Single-story suite with six private offices, two restrooms, and two private entrances in a quiet office condo community.
Where is this office units located?
The property is located at 3131 Custer Drive Lexington, KY.
What is the asking price?
The asking price for this property is $220,000.
What are key features of this property?
This property features: Versatile 1,152 sq ft professional office suite for various businesses or investment.; Six private offices offer dedicated workspace.; Two private entrances allow operation as two independent offices.
