Downtown Lexington Retail
For Sale
Contact for pricing
1200 N Limestone, Lexington, KY 40505
Retail space in high-traffic Lexington location with strong rental history.
Property Size3,120 SF
Price / SF$219.55
Days on Market185
Property Features for 1200 N Limestone
General Information
Standard status
Active
Size
3,120 SF
Property subtype
Retail
Zoning
B-1
Building Details
Year Built
1945
Listing Agency:
SVN | Stone Commercial Real Estate
(859) 264-0888
Listed By:
Rachel Ridd · License #KN 287622
Source:
Crexi
Added: Feb 19
Changed: Aug 8
Last Checked: Aug 22 at 7:18AM
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 SVN | Stone Commercial Real Estate
Investment Insights
Based on property information with market context.
Located in Downtown Lexington, KY, this property, constructed in 1945, offers 3,120 square feet of retail space. The property is situated in a B-1 zoned area and features 100% occupancy with one unit. The retail/street retail space benefits from a strong and consistent rental history. The property is located in the Noli neighborhood, a business hub with restaurants, boutique shops, and service-oriented businesses. The central location provides heavy foot traffic, street visibility, and access to residential and commercial areas. Showings are by appointment only.
Key Highlights
- Prime investment opportunity in Downtown Lexington, KY.
- 100% occupancy with a strong and consistent rental history.
- Located in a high‑traffic, high‑visibility location in the Noli neighborhood.
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
$29,688
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
4.33%
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%
$593,760
$593.8K
Cap Rate 7%
$424,114
$424.1K
Cap Rate 9%
$329,867
$329.9K
Market Conditions
NOI Build-Up for 3,120 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
$44.9K $14.40/SF
− Vacancy
−$2.5K −$0.81/SF
EGI
$42.4K $13.59/SF
− OpEx
−$12.7K −$4.08/SF
NOI
$29.7K $9.52/SF
Area
Lexington, KY
Vacancy
5.60%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$593,760
Cap Rate 7%
$424,114
Cap Rate 9%
$329,867
Alternative Uses
Best Use
Retail
$424.1K
$371.1K – $494.8K
NOI $29,688 @ 7.0% cap · market cap 4.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$650.0K
$568.8K – $758.4K
NOI $45,503 @ 7.0% cap · market cap 6.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
802
Businesses Nearby
129k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 57%
Shops & Services 31%
Apparel 5%
Groceries 4%
Dutch Bros. Coffee
Dining
17,001 visits/mo
0.4 miles
Golden Corral
Dining
16,883 visits/mo
0.4 miles
Popeyes Louisiana Kitchen
Dining
13,882 visits/mo
0.4 miles
Dollar Tree
Shops & Services
10,911 visits/mo
0.5 miles
Hardee's
Dining
8,308 visits/mo
0.5 miles
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
Market
Vacancy Rate% for Retail 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?
Retail space - Retail space in high-traffic Lexington location with strong rental history.
Where is this retail space located?
The property is located at 1200 N Limestone Lexington, KY.
What is the asking price?
The asking price for this property is $685,000.
What are key features of this property?
This property features: Prime investment opportunity in Downtown Lexington, KY.; 100% occupancy with a strong and consistent rental history.; Located in a high‑traffic, high‑visibility location in the Noli neighborhood.
