Renovated Creative Office
For Sale
$1,750,000
146 E Third Street, Lexington, KY 40508
COMMERCIAL - Lexington, KY
Property Size7,258 SF
Lot Size0.21 Acres
Price / SF$255.55
Days on Market113
Property Features for 146 E Third Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
B-2A Downtown Frame Business
Rooms
Basement
Basement
Concrete, Interior Entry, Partially Finished
Subdivision
Commercial
Directions
N. Limestone to right on E. Third Street, the property will be on your right across from the Carrick House.
Standard status
Active
APN
11355625
Size
6,848 SF
Lot size
0.21 Acres
Amenities
boardroom
library
kitchenette
conference room
garage space
sundeck
rooftop deck
fireplace
Building Details
Year built
1840
Floors in Building
3
Listing Agency:
Block + Lot Homes
(859) 309-0099
Listed By:
Adam Boardman · License #72655
(859) 338-8243
Added: Apr 21
Changed: Aug 4
Last Checked: Aug 11 at 3:06AM
MLS# 26008596
Copyright © 2026 ImagineMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This two-story creative office property provides 6,848 square feet above grade, along with 410 square feet of finished lower-level space. The first floor includes reception and conference areas, a library with custom maple cabinetry and quartz countertops, a kitchenette with dishwasher, two restrooms, and a flexible garage area with a drive-in door. Original hardwood flooring and exposed brick are paired with contemporary finishes. An elevator and open stairwell connect the levels.
The second floor features vaulted ceilings with exposed joists, open work areas, hardwood floors, and a private sundeck with custom railing. Completed in 2015, the renovation included the roof, HVAC systems, windows, elevator, rear staircase, and porous concrete parking surface. Six dedicated parking spaces are provided on site, with additional surface parking nearby. The property is located in Downtown Lexington near retail and restaurants.
The second floor features vaulted ceilings with exposed joists, open work areas, hardwood floors, and a private sundeck with custom railing. Completed in 2015, the renovation included the roof, HVAC systems, windows, elevator, rear staircase, and porous concrete parking surface. Six dedicated parking spaces are provided on site, with additional surface parking nearby. The property is located in Downtown Lexington near retail and restaurants.
Key Highlights
- 6,848 SF above grade plus 410 SF of finished lower‑level space
- Two‑story layout with open work areas, conference space, library, kitchenette, and restrooms
- 2015 renovation included roof, HVAC systems, windows, elevator, and rear staircase
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
$76,547
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
4.37%
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%
$1,530,940
$1.5M
Cap Rate 7%
$1,093,529
$1.1M
Cap Rate 9%
$850,522
$850.5K
Market Conditions
NOI Build-Up for 6,848 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
$123.3K $18.00/SF
− Vacancy
−$21.2K −$3.10/SF
EGI
$102.1K $14.90/SF
− OpEx
−$25.5K −$3.73/SF
NOI
$76.5K $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%
$1,530,940
Cap Rate 7%
$1,093,529
Cap Rate 9%
$850,522
Alternative Uses
Best Use
Office B
$1.09M
$956.8K – $1.28M
NOI $76,547 @ 7.0% cap · market cap 4.37%
Second Best
Flex RnD
$780.6K
$683.0K – $910.7K
NOI $54,643 @ 7.0% cap · market cap 3.12%
Theoretical Best
Office A
$1.43M
$1.25M – $1.66M
NOI $99,873 @ 7.0% cap · market cap 5.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
3,472
Businesses Nearby
Explore this area
Business Placement
Demographics for 40508, KY
25,586
Population
11,458
Households
2.2
Avg Household Size
26
Median Age
36%
College-Educated
86%
High-School Grad
4.2 sq mi
ZIP Area
6,092
Density / Sq Mi
$28,040
Median Household Income
$13,316
Median Earnings
$900
Median Rent
$174,900
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?
Creative space - Historic two-story workspace combines open areas, original finishes, and modern building systems.
Where is this creative space located?
The property is located at 146 E Third Street Lexington, KY.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 6,848 SF above grade plus 410 SF of finished lower‑level space; Two‑story layout with open work areas, conference space, library, kitchenette, and restrooms; 2015 renovation included roof, HVAC systems, windows, elevator, and rear staircase
