Brick Mixed-Use Office
For Sale
$500,000
1618 Harrodsburg Road, Lexington, KY 40504
Commercial Sale, Lexington, KY
Property Size2,240 SF
Lot Size0.28 Acres
Price / SF$223.21
Days on Market9
Property Features for 1618 Harrodsburg Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
349- Office-Med
Rooms
Basement
Parking
10
Basement
Interior Entry, Finished, Walk-Up Access, Sump Pump, Full
Subdivision
Picadome
Directions
Clays Mill Road to Harrodsburg Road
Special listing conditions
Auction
Standard status
Active
APN
45254325
Size
2,240 SF
Lot size
0.28 Acres
Utilities
Utilities
Water Available
Sewer type
Public Sewer
Heating system
Natural Gas, Forced Air
Cooling system
Electric, Heat Pump
Building Details
Year built
1948
Floors in Building
1
Building materials
Brick
Roof type
Shingle
Listing Agency:
Noel Auctioneers and Real Estate Advisors
Listed By:
Jonathan Noel · License #72617
(859) 612-9175
Added: Sep 18
Changed: Sep 24
Last Checked: Sep 26 at 2:06AM
MLS# 26025883
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 2,240-square-foot mixed-use property combines a brick building with a professional office layout and residential character. Built in 1948, the main level includes reception, a waiting room, private offices, a conference room, and additional work areas. Hardwood floors and a finished basement add functional and architectural detail.
The basement provides lab or work zones along with substantial storage. The property occupies 0.276 acres at 1618 Harrodsburg Road in Lexington, near St. Joseph Hospital and the Harrodsburg Road Office Park. Natural gas forced-air heating, electric and heat-pump cooling, water availability, public sewer, and a shingle roof are in place. The layout is identified as suitable for medical practices, counseling clinics, corporate offices, and professional service firms.
The basement provides lab or work zones along with substantial storage. The property occupies 0.276 acres at 1618 Harrodsburg Road in Lexington, near St. Joseph Hospital and the Harrodsburg Road Office Park. Natural gas forced-air heating, electric and heat-pump cooling, water availability, public sewer, and a shingle roof are in place. The layout is identified as suitable for medical practices, counseling clinics, corporate offices, and professional service firms.
Key Highlights
- 2,240‑square‑foot mixed‑use property on 0.276 acres
- Main level includes reception, waiting room, private offices, conference room, and work areas
- Finished basement offers lab or work zones plus extensive storage
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
$25,039
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
5.01%
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%
$500,780
$500.8K
Cap Rate 7%
$357,700
$357.7K
Cap Rate 9%
$278,211
$278.2K
Market Conditions
NOI Build-Up for 2,240 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
$40.3K $18.00/SF
− Vacancy
−$6.9K −$3.10/SF
EGI
$33.4K $14.90/SF
− OpEx
−$8.3K −$3.73/SF
NOI
$25.0K $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%
$500,780
Cap Rate 7%
$357,700
Cap Rate 9%
$278,211
Alternative Uses
Best Use
Office B
$357.7K
$313.0K – $417.3K
NOI $25,039 @ 7.0% cap · market cap 5.01%
Second Best
Healthcare Medical
$339.1K
$296.8K – $395.7K
NOI $23,740 @ 7.0% cap · market cap 4.75%
Theoretical Best
Office A
$466.7K
$408.4K – $544.5K
NOI $32,669 @ 7.0% cap · market cap 6.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,618
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Main-level offices include reception, waiting, conference, and private work areas.
Where is this mixed-use property located?
The property is located at 1618 Harrodsburg Road Lexington, KY.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: 2,240‑square‑foot mixed‑use property on 0.276 acres; Main level includes reception, waiting room, private offices, conference room, and work areas; Finished basement offers lab or work zones plus extensive storage
