Professional Office with Finished
For Sale
$575,000
1618 Harrodsburg Road, Lexington, KY 40504
Older home conversion with a reception and waiting area, multiple offices, and a finished basement with lab/work areas.
Property Size1,980 SF
Price / SF$290.40
Days on Market90
Property Features for 1618 Harrodsburg Road
General Information
Standard status
Active
Size
1,980 SF
Property subtype
Mixed Use
Amenities
Electric, Heat Pump
3
Vinyl
Shingle
10 Parking Spaces. On Site, Paved Driveway.
Building Details
Year Built
1948
Stories
1
Listing Agency:
RE/MAX Elite Lexington
(859) 245-1165
Listed By:
Karen Angelucci · License #217748
(859) 338-7857
Source:
Xome
Added: Jun 6
Changed: Sep 2
Last Checked: Sep 2 at 2:16PM
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 RE/MAX Elite Lexington
Investment Insights
Based on property information with market context.
This office building, originally a residential home, has been converted for professional use and features character throughout, including hardwood floors. The interior includes a welcoming reception area with a waiting room, multiple private offices, a conference room, and flexible workspace to support a range of office-related activities.
A finished basement adds additional usable space, including lab/work areas and generous storage. The property is being sold AS IS, and the buyer is responsible for verifying zoning and intended use.
Located near St. Joseph Hospital and an office park on Harrodsburg Road, the property is positioned for convenient access for professional tenants and visitors.
A finished basement adds additional usable space, including lab/work areas and generous storage. The property is being sold AS IS, and the buyer is responsible for verifying zoning and intended use.
Located near St. Joseph Hospital and an office park on Harrodsburg Road, the property is positioned for convenient access for professional tenants and visitors.
Key Highlights
- 1948 mixed‑use property being sold AS IS
- Commercial setup includes a reception area and waiting room
- Multiple private offices plus a conference room and flexible workspace
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
$22,132
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
3.85%
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%
$442,640
$442.6K
Cap Rate 7%
$316,171
$316.2K
Cap Rate 9%
$245,911
$245.9K
Market Conditions
NOI Build-Up for 1,980 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
$35.6K $18.00/SF
− Vacancy
−$6.1K −$3.10/SF
EGI
$29.5K $14.90/SF
− OpEx
−$7.4K −$3.73/SF
NOI
$22.1K $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%
$442,640
Cap Rate 7%
$316,171
Cap Rate 9%
$245,911
Alternative Uses
Best Use
Office B
$316.2K
$276.7K – $368.9K
NOI $22,132 @ 7.0% cap · market cap 3.85%
Second Best
Healthcare Medical
$299.8K
$262.3K – $349.8K
NOI $20,985 @ 7.0% cap · market cap 3.65%
Theoretical Best
Office A
$412.5K
$361.0K – $481.3K
NOI $28,877 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,618
Businesses Nearby
Balanced
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Older home conversion with a reception and waiting area, multiple offices, and a finished basement with lab/work areas.
Where is this medical office space located?
The property is located at 1618 Harrodsburg Road 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: 1948 mixed‑use property being sold AS IS; Commercial setup includes a reception area and waiting room; Multiple private offices plus a conference room and flexible workspace
