Stand-Alone Office
For Sale
$575,000
117 W Second St, Lexington, KY 40507
Efficient professional layout with private offices, conference space, restrooms, kitchen, and dedicated parking.
Property Size1,848 SF
Price / SF$311.15
Days on Market168
Property Features for 117 W Second St
General Information
Standard status
Active
Size
1,848 SF
Class
A
Total Parking Spaces
1
Property subtype
Multi Tenant Office
Zoning
B-2A
Building Details
Building Size
1,848 SF
Year Built
1920
Buildings
1
Listing Agency:
SVN | Stone Commercial Real Estate Advisors
(859) 264-0888
Listed By:
Wade Haga · License #223094
(859) 264-0888
Source:
Thebrokerlist
Added: Mar 16
Changed: Aug 29
Last Checked: Aug 29 at 3:38PM
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 Advisors
Investment Insights
Based on property information with market context.
This stand-alone office building provides approximately 1,848 SF of professional workspace in an efficient configuration. The interior includes two private offices measuring 14’ x 17’ each, an additional 8’ x 10’ office, an 8’ x 9’ conference room, two restrooms, and a full kitchen. Recent roof replacement and new landscaping add to the property’s physical improvements.
Located at 117 W Second St in downtown Lexington, the property sits one block from the Fayette County courthouses and offers walkable access to downtown offices, restaurants, and other amenities. One dedicated parking space is included, with additional parking available for lease in the adjacent lot.
B-2A zoning accommodates a wide variety of office and retail uses, providing flexibility for professional and commercial occupancy.
Located at 117 W Second St in downtown Lexington, the property sits one block from the Fayette County courthouses and offers walkable access to downtown offices, restaurants, and other amenities. One dedicated parking space is included, with additional parking available for lease in the adjacent lot.
B-2A zoning accommodates a wide variety of office and retail uses, providing flexibility for professional and commercial occupancy.
Key Highlights
- ±1,848 SF stand‑alone office building
- Two private offices measuring 14’ x 17’ each
- Additional 8’ x 10’ office and 8’ x 9’ conference room
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
$20,657
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
3.59%
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%
$413,140
$413.1K
Cap Rate 7%
$295,100
$295.1K
Cap Rate 9%
$229,522
$229.5K
Market Conditions
NOI Build-Up for 1,848 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
$33.3K $18.00/SF
− Vacancy
−$5.7K −$3.10/SF
EGI
$27.5K $14.90/SF
− OpEx
−$6.9K −$3.73/SF
NOI
$20.7K $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%
$413,140
Cap Rate 7%
$295,100
Cap Rate 9%
$229,522
Alternative Uses
Best Use
Office B
$295.1K
$258.2K – $344.3K
NOI $20,657 @ 7.0% cap · market cap 3.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$385.0K
$336.9K – $449.2K
NOI $26,952 @ 7.0% cap · market cap 4.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,595
Businesses Nearby
Explore this area
Business Placement
Demographics for 40507, KY
2,043
Population
1,765
Households
1.2
Avg Household Size
44
Median Age
54%
College-Educated
93%
High-School Grad
0.4 sq mi
ZIP Area
5,108
Density / Sq Mi
$34,543
Median Household Income
$40,826
Median Earnings
$642
Median Rent
$391,000
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 - Efficient professional layout with private offices, conference space, restrooms, kitchen, and dedicated parking.
Where is this office building located?
The property is located at 117 W Second St Lexington, KY.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: ±1,848 SF stand‑alone office building; Two private offices measuring 14’ x 17’ each; Additional 8’ x 10’ office and 8’ x 9’ conference room
