Prime Lexington Commercial
For Sale
$3,195,000
2134 Nicholasville Road, Lexington, KY 40503
COMMERCIAL - Lexington, KY
Property Size19,145 SF
Lot Size2.22 Acres
Price / SF$166.88
Days on Market103
Property Features for 2134 Nicholasville Road
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
P-1 Professional Office
Parking
90
Parking features
Open
Subdivision
Southland
Directions
From New Circle Rd take the exit for Nicholasville Rd towards downtown Lexington ( North). Continue on Nicholasville Rd. for approximately 1 mile. 2134 Nicholasville Rd. will be on your right.
Standard status
Active
APN
13722300
Size
19,145 SF
Lot size
2.22 Acres
Building Details
Year built
1962
Floors in Building
2
Listing Agency:
Kentucky Real Estate Group
(859) 421-5839
Listed By:
Judy Rola · License #195324
(859) 421-5839
Added: May 1
Changed: Aug 4
Last Checked: Aug 11 at 7:06PM
MLS# 26009768
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 commercial building is situated on 2.2 acres in a highly visible location on Nicholasville Road in Lexington, Kentucky. The property is located near Southland Drive, and minutes from UK Healthcare and Baptist Hospital. The traffic count is 40,000+ cars per day. The building provides an option for medical, professional and administrative use. The expansive lot provides ample on-site parking for employees and clients. The property contains 19,145 square feet.
Key Highlights
- Premier, highly visible location on Nicholasville Rd.
- Expansive 2.2‑acre lot.
- Ample on‑site parking.
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
$253,902
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
7.95%
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%
$5,078,040
$5.1M
Cap Rate 7%
$3,627,171
$3.6M
Cap Rate 9%
$2,821,133
$2.8M
Market Conditions
NOI Build-Up for 19,145 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
$390.6K $20.40/SF
− Vacancy
−$52.0K −$2.72/SF
EGI
$338.5K $17.68/SF
− OpEx
−$84.6K −$4.42/SF
NOI
$253.9K $13.26/SF
Area
ZIP 40503
Vacancy
13.32%
Lease Rate
$20.40 /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%
$5,078,040
Cap Rate 7%
$3,627,171
Cap Rate 9%
$2,821,133
Alternative Uses
Best Use
Office B
$3.63M
$3.17M – $4.23M
NOI $253,902 @ 7.0% cap · market cap 7.95%
Second Best
Healthcare Medical
$3.08M
$2.69M – $3.59M
NOI $215,588 @ 7.0% cap · market cap 6.75%
Theoretical Best
Office A
$3.99M
$3.49M – $4.65M
NOI $279,217 @ 7.0% cap · market cap 8.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,197
Businesses Nearby
Explore this area
Business Placement
Demographics for 40503, KY
28,073
Population
13,437
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
8.8 sq mi
ZIP Area
3,190
Density / Sq Mi
$74,161
Median Household Income
$43,061
Median Earnings
$1,110
Median Rent
$280,000
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 building - Highly visible building on 2.2 acres near UK Healthcare.
Where is this office building located?
The property is located at 2134 Nicholasville Road Lexington, KY.
What is the asking price?
The asking price for this property is $3,195,000.
What are key features of this property?
This property features: Premier, highly visible location on Nicholasville Rd.; Expansive 2.2‑acre lot.; Ample on‑site parking.
