Standalone Office
New
For Sale
$465,000
1013 Industry Rd, Lexington, KY 40505
Reception area, private offices, open work areas, kitchenette, and two restrooms support a flexible office layout.
Property Size1,640 SF
Days on Market5
Property Features for 1013 Industry Rd
General Information
Standard status
Active
Size
1,640 SF
Class
C
Property subtype
Office
Zoning
B-3
Additional Details
Highway Access
Yes
Building Details
Building Size
1,640 SF
Buildings
1
Listing Agency:
NAI Isaac
Listed By:
Max Darby · License #289600
(859) 825-8658
Source:
Naiglobal
Added: Sep 22
Last Checked: Sep 26 at 5:02AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of NAI Isaac
Investment Insights
Based on property information with market context.
Located at 1013 Industry Rd in Lexington, this standalone office property offers a reception area, four private offices, two open work areas, a kitchenette, and two restrooms. The configuration provides a practical setting for an office user, small retail operation, or a combination of the two. B-3 zoning is identified as suitable for these uses.
The property sits next to Eastland Shopping Center and near the signalized Winchester Road intersection, where traffic counts are approximately 29,675 VPD. Eleven parking spaces are positioned at the front, with additional employee parking at the rear. New Circle Road and Lexington’s downtown Central Business District are nearby, while I-75 is approximately 3.5 miles away. The property is also near the Hamburg East development.
The property sits next to Eastland Shopping Center and near the signalized Winchester Road intersection, where traffic counts are approximately 29,675 VPD. Eleven parking spaces are positioned at the front, with additional employee parking at the rear. New Circle Road and Lexington’s downtown Central Business District are nearby, while I-75 is approximately 3.5 miles away. The property is also near the Hamburg East development.
Key Highlights
- B‑3 zoning identified as suitable for office, small retail, or combined use
- Four private offices and two open work areas
- Reception area, kitchenette, and two restrooms
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
$18,332
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
3.94%
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%
$366,640
$366.6K
Cap Rate 7%
$261,886
$261.9K
Cap Rate 9%
$203,689
$203.7K
Market Conditions
NOI Build-Up for 1,640 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
$29.5K $18.00/SF
− Vacancy
−$5.1K −$3.10/SF
EGI
$24.4K $14.90/SF
− OpEx
−$6.1K −$3.73/SF
NOI
$18.3K $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%
$366,640
Cap Rate 7%
$261,886
Cap Rate 9%
$203,689
Alternative Uses
Best Use
Office B
$261.9K
$229.2K – $305.5K
NOI $18,332 @ 7.0% cap · market cap 3.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$341.7K
$299.0K – $398.6K
NOI $23,918 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,100
Businesses Nearby
Explore this area
Business Placement
Demographics for 40505, KY
26,278
Population
12,026
Households
2.2
Avg Household Size
39
Median Age
23%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,285
Density / Sq Mi
$58,922
Median Household Income
$33,517
Median Earnings
$914
Median Rent
$166,300
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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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 - Reception area, private offices, open work areas, kitchenette, and two restrooms support a flexible office layout.
Where is this office building located?
The property is located at 1013 Industry Rd Lexington, KY.
What is the asking price?
The asking price for this property is $465,000.
What are key features of this property?
This property features: B‑3 zoning identified as suitable for office, small retail, or combined use; Four private offices and two open work areas; Reception area, kitchenette, and two restrooms
