Freestanding Office
For Sale
$1,675,000
3221 Summit Square Pl, Lexington, KY 40509
Fully leased professional office property with two established occupants and P-1 zoning.
Property Size10,308 SF
Price / SF$162.50
Days on Market1065
Property Features for 3221 Summit Square Pl
General Information
Standard status
Active
Size
10,308 SF
Property subtype
Office
Zoning
PROFESSIONAL OFFICE P-1
Occupancy
100%
Amenities
Water
Sewer
Building Details
Year Built
2004
Buildings
1
Building Size
10,308 SF
Tenancy
Multi
Abandoned
No
Listing Agency:
The Gibson Company
(859) 224-8833
Listed By:
Kevin Verhoven · License #58263
(859) 224-8833
Source:
Kcrea.resimplifi
Added: Oct 3, 2023
Changed: Aug 30
Last Checked: Sep 1 at 3:43PM
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.
Constructed in 2004, this freestanding office property contains 10,308 square feet and is fully occupied by two tenants. Suite 100 is leased to Busy Bee Occupational Therapy, while Suite 200 is occupied by Central Kentucky Eye Care & Wellness. The building’s professional office configuration and existing occupancy provide a defined commercial use profile.
The property is located at 3221 Summit Square Place in Lexington, near the Richmond Road and Man O' War Boulevard intersection. Zoning is designated Professional Office P-1, supporting the building’s established office setting.
The property is located at 3221 Summit Square Place in Lexington, near the Richmond Road and Man O' War Boulevard intersection. Zoning is designated Professional Office P-1, supporting the building’s established office setting.
Key Highlights
- 10,308‑square‑foot freestanding office building
- Fully occupied by two tenants
- Suite 100 leased to Busy Bee Occupational Therapy
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
$128,664
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
7.68%
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%
$2,573,280
$2.6M
Cap Rate 7%
$1,838,057
$1.8M
Cap Rate 9%
$1,429,600
$1.4M
Market Conditions
NOI Build-Up for 10,308 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
$197.9K $19.20/SF
− Vacancy
−$26.4K −$2.56/SF
EGI
$171.6K $16.64/SF
− OpEx
−$42.9K −$4.16/SF
NOI
$128.7K $12.48/SF
Area
ZIP 40509
Vacancy
13.32%
Lease Rate
$19.20 /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%
$2,573,280
Cap Rate 7%
$1,838,057
Cap Rate 9%
$1,429,600
Alternative Uses
Best Use
Office B
$1.84M
$1.61M – $2.14M
NOI $128,664 @ 7.0% cap · market cap 7.68%
Second Best
Healthcare Medical
$1.54M
$1.35M – $1.80M
NOI $108,061 @ 7.0% cap · market cap 6.45%
Theoretical Best
Office A
$2.15M
$1.88M – $2.51M
NOI $150,335 @ 7.0% cap · market cap 8.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,138
Businesses Nearby
Explore this area
Business Placement
Demographics for 40509, KY
44,572
Population
19,802
Households
2.3
Avg Household Size
36
Median Age
57%
College-Educated
95%
High-School Grad
47.8 sq mi
ZIP Area
932
Density / Sq Mi
$89,429
Median Household Income
$52,489
Median Earnings
$1,317
Median Rent
$338,200
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.
Frequently Asked Questions
What type of property is this?
Office building - Fully leased professional office property with two established occupants and P-1 zoning.
Where is this office building located?
The property is located at 3221 Summit Square Pl Lexington, KY.
What is the asking price?
The asking price for this property is $1,675,000.
What are key features of this property?
This property features: 10,308‑square‑foot freestanding office building; Fully occupied by two tenants; Suite 100 leased to Busy Bee Occupational Therapy
