Professional Office Suite with Private
For Sale
$220,000
Pending
2-3131 Custer Dr, Lexington, KY 40517
Single-story office suite in a quiet office condo community featuring vaulted ceilings and six enclosed private offices.
Property Size1,152 SF
Days on Market107
Property Features for 2-3131 Custer Dr
General Information
Standard status
Pending
Size
1,152 SF
Listing Agency:
The Brokerage
(859) 983-7365
Listed By:
Chad Bowman
(859) 396-5256
Source:
Exprealty
Added: May 21
Changed: Aug 21
Last Checked: Sep 4 at 9:07AM
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 Brokerage
Investment Insights
Based on property information with market context.
This polished, single-story professional office suite is located within a quiet office condo community and offers a flexible layout designed for day-to-day client service. The space includes vaulted ceilings that create an open feel upon entry, six enclosed private offices for focused work, and two restrooms for convenient access. Two private entrances, along with a hallway door, allow the suite to operate as two fully independent offices if desired.
The suite totals 1,152 square feet and is well-suited for a range of professional uses. Existing furniture can remain with an acceptable offer if desired, supporting a turn-key approach for qualified buyers.
Whether you’re seeking a dependable office arrangement for your practice or evaluating the suite as a commercial investment, the configuration provides separation between work areas while retaining a professional presentation for clients and visitors.
The suite totals 1,152 square feet and is well-suited for a range of professional uses. Existing furniture can remain with an acceptable offer if desired, supporting a turn-key approach for qualified buyers.
Whether you’re seeking a dependable office arrangement for your practice or evaluating the suite as a commercial investment, the configuration provides separation between work areas while retaining a professional presentation for clients and visitors.
Key Highlights
- 1,152 SF single‑story office suite in a quiet office condo community with vaulted ceilings
- Six enclosed private offices plus two restrooms for staff and clients
- Two private entrances and a hallway door allow the space to function as two independent offices if desired
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
$14,399
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
6.54%
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%
$287,980
$288.0K
Cap Rate 7%
$205,700
$205.7K
Cap Rate 9%
$159,989
$160.0K
Market Conditions
NOI Build-Up for 1,152 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
$22.1K $19.20/SF
− Vacancy
−$2.9K −$2.53/SF
EGI
$19.2K $16.67/SF
− OpEx
−$4.8K −$4.17/SF
NOI
$14.4K $12.50/SF
Area
ZIP 40517
Vacancy
13.20%
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%
$287,980
Cap Rate 7%
$205,700
Cap Rate 9%
$159,989
Alternative Uses
Best Use
Office B
$205.7K
$180.0K – $240.0K
NOI $14,399 @ 7.0% cap · market cap 6.54%
Second Best
Healthcare Medical
$196.2K
$171.7K – $228.9K
NOI $13,736 @ 7.0% cap · market cap 6.24%
Theoretical Best
Office A
$238.9K
$209.0K – $278.7K
NOI $16,722 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
521
Businesses Nearby
Explore this area
Business Placement
Demographics for 40517, KY
37,751
Population
18,306
Households
2.1
Avg Household Size
33
Median Age
41%
College-Educated
92%
High-School Grad
6.2 sq mi
ZIP Area
6,089
Density / Sq Mi
$51,778
Median Household Income
$35,010
Median Earnings
$1,092
Median Rent
$196,300
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 units - Single-story office suite in a quiet office condo community featuring vaulted ceilings and six enclosed private offices.
Where is this office units located?
The property is located at 2-3131 Custer Dr Lexington, KY.
What is the asking price?
The asking price for this property is $220,000.
What are key features of this property?
This property features: 1,152 SF single‑story office suite in a quiet office condo community with vaulted ceilings; Six enclosed private offices plus two restrooms for staff and clients; Two private entrances and a hallway door allow the space to function as two independent offices if desired
