Two-Story Storefront
For Sale
$1,575,000
1316 S Broadway, Lexington, KY 40504
B-1-zoned building with retail windows, office areas, on-site parking, and South Broadway signage.
Property Size8,400 SF
Price / SF$187.50
Days on Market509
Property Features for 1316 S Broadway
General Information
Standard status
Active
Size
8,400 SF
Elevators
No
Property subtype
Retail
Zoning
B-1
Additional Details
Asking Price
$1,575,000
Traffic Count
30,000 vehicles/day
Building Details
Year Built
1983
Buildings
1
Stories
2
Building Size
8,400 SF
Listing Agency:
The Gibson Company
(248) 318-0881
Listed By:
Stuart Stebleton · License #244600
(248) 318-0881
Source:
Kcrea.resimplifi
Added: Apr 11, 2025
Changed: Aug 29
Last Checked: Aug 31 at 1:09PM
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 The Gibson Company
Investment Insights
Based on property information with market context.
This 8,400-square-foot, two-story storefront building offers a flexible layout for one occupant or separate floor users. Each floor contains 4,200 square feet. The first level features expansive retail windows suitable for a retail or office presentation, while the upper level combines a large open conference room with individual offices and additional open work areas. The building was constructed in 1983 and does not have an elevator.
Positioned at 1316 S Broadway in Lexington, the property has signage available on South Broadway and receives exposure to a major downtown thoroughfare with traffic counts exceeding 30,000 daily cars. Hospitals, hotels, and restaurants are nearby, and the property includes ample parking. The B-1 zoning designation and two-floor configuration provide a range of storefront and office layouts.
Positioned at 1316 S Broadway in Lexington, the property has signage available on South Broadway and receives exposure to a major downtown thoroughfare with traffic counts exceeding 30,000 daily cars. Hospitals, hotels, and restaurants are nearby, and the property includes ample parking. The B-1 zoning designation and two-floor configuration provide a range of storefront and office layouts.
Key Highlights
- 8,400 SF two‑story building with 4,200‑square‑foot floor plates
- First floor includes large retail windows for retail or office use
- Second floor has a large open/conference room, individual offices, and open work area
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
$93,895
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
5.96%
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%
$1,877,900
$1.9M
Cap Rate 7%
$1,341,357
$1.3M
Cap Rate 9%
$1,043,278
$1.0M
Market Conditions
NOI Build-Up for 8,400 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
$151.2K $18.00/SF
− Vacancy
−$26.0K −$3.10/SF
EGI
$125.2K $14.90/SF
− OpEx
−$31.3K −$3.73/SF
NOI
$93.9K $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%
$1,877,900
Cap Rate 7%
$1,341,357
Cap Rate 9%
$1,043,278
Alternative Uses
Best Use
Office B
$1.34M
$1.17M – $1.56M
NOI $93,895 @ 7.0% cap · market cap 5.96%
Second Best
Retail
$1.14M
$999.1K – $1.33M
NOI $79,930 @ 7.0% cap · market cap 5.07%
Theoretical Best
Office A
$1.75M
$1.53M – $2.04M
NOI $122,508 @ 7.0% cap · market cap 7.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
30,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
1,602
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 40504, KY
26,042
Population
13,175
Households
2
Avg Household Size
34
Median Age
32%
College-Educated
84%
High-School Grad
6.2 sq mi
ZIP Area
4,200
Density / Sq Mi
$43,015
Median Household Income
$29,195
Median Earnings
$888
Median Rent
$209,400
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.
Similar Off Market Nearby
- Imperial Flowers — 393 Waller Ave #17, Lexington, KY 40504
Frequently Asked Questions
What type of property is this?
Storefront property - B-1-zoned building with retail windows, office areas, on-site parking, and South Broadway signage.
Where is this storefront property located?
The property is located at 1316 S Broadway Lexington, KY.
What is the asking price?
The asking price for this property is $1,575,000.
What are key features of this property?
This property features: 8,400 SF two‑story building with 4,200‑square‑foot floor plates; First floor includes large retail windows for retail or office use; Second floor has a large open/conference room, individual offices, and open work area
