Single-Story Office
New
For Sale
$750,000
1316 Versailles Rd, Lexington, KY 40504
Flexible commercial layout in an established West Lexington corridor with access to Downtown Lexington and New Circle Road.
Property Size3,648 SF
Lot Size0.49 Acres
Price / SF$205.59
Days on Market4
Property Features for 1316 Versailles Rd
General Information
Standard status
Active
Size
3,648 SF
Class
C
Lot size
0.49 Acres
Property subtype
Office
Zoning
B-1
Occupancy
100%
Additional Details
Road Access
Yes
Building Details
Building Size
3,648 SF
Year Built
1963
Buildings
1
Stories
1
Tenancy
Single
Owner Occupied
No
Listing Agency:
NAI Isaac
(859) 221-4000
Listed By:
Al Isaac · License #KY #223721
(859) 221-4000
Source:
Naiglobal
Added: Aug 28
Changed: Aug 29
Last Checked: Aug 31 at 1:58PM
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.
This single-story office property contains approximately 3,648 square feet on approximately 0.49 acres. The building is currently leased through April 1, 2027, with owner occupancy available after the lease expires. Its flexible configuration supports office and commercial applications, subject to applicable requirements.
The property occupies the intersection of Versailles Road, Red Mile Road, and Sparta Court in Lexington. It is adjacent to the Red Mile corridor and less than 2 miles from the University of Kentucky, with convenient connections to Downtown Lexington, New Circle Road, and Blue Grass Airport. The surrounding commercial area includes major retailers, restaurants, grocery stores, and service providers. The site is zoned B-1, Neighborhood Business, and the building was constructed in 1963.
The property occupies the intersection of Versailles Road, Red Mile Road, and Sparta Court in Lexington. It is adjacent to the Red Mile corridor and less than 2 miles from the University of Kentucky, with convenient connections to Downtown Lexington, New Circle Road, and Blue Grass Airport. The surrounding commercial area includes major retailers, restaurants, grocery stores, and service providers. The site is zoned B-1, Neighborhood Business, and the building was constructed in 1963.
Key Highlights
- Approximately 3,648 SF single‑story office building on approximately 0.49 acres
- Current lease runs through April 1, 2027; owner occupancy available after expiration
- Intersection location at Versailles Road, Red Mile Road, and Sparta Court
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
$40,777
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
5.44%
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%
$815,540
$815.5K
Cap Rate 7%
$582,529
$582.5K
Cap Rate 9%
$453,078
$453.1K
Market Conditions
NOI Build-Up for 3,648 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
$65.7K $18.00/SF
− Vacancy
−$11.3K −$3.10/SF
EGI
$54.4K $14.90/SF
− OpEx
−$13.6K −$3.73/SF
NOI
$40.8K $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%
$815,540
Cap Rate 7%
$582,529
Cap Rate 9%
$453,078
Alternative Uses
Best Use
Office B
$582.5K
$509.7K – $679.6K
NOI $40,777 @ 7.0% cap · market cap 5.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$760.1K
$665.1K – $886.7K
NOI $53,204 @ 7.0% cap · market cap 7.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
604
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Office building - Flexible commercial layout in an established West Lexington corridor with access to Downtown Lexington and New Circle Road.
Where is this office building located?
The property is located at 1316 Versailles Rd Lexington, KY.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Approximately 3,648 SF single‑story office building on approximately 0.49 acres; Current lease runs through April 1, 2027; owner occupancy available after expiration; Intersection location at Versailles Road, Red Mile Road, and Sparta Court
