Flex Property with
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2408 Merchant St, Lexington, KY 40510
Two-building commercial property combines private offices, workshops, loading access, and drive-in functionality for varied business operations.
Property Size7,152 SF
Price / SF$148.21
Days on Market4
Property Features for 2408 Merchant St
General Information
Standard status
Active
Size
7,152 SF
Property subtype
Industrial
Zoning
Other
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Clear Height
17 ft
Mezzanine
1,363 SF
Dock-High Doors
1
Drive-In Doors
1
Amenities
conference room
employee break area
kitchenette
Building Details
Year Built
1989
Buildings
2
Listing Agency:
simpler.realestate
Listed By:
Joe Hayden · License #KY 212222
(502) 641-3776
Source:
Crexi
Added: Aug 31
Changed: Sep 2
Last Checked: Sep 2 at 1:26PM
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 simpler.realestate
Investment Insights
Based on property information with market context.
This flex property consists of two separate buildings serving office, warehouse, and workshop functions. The dedicated office building contains three private offices, a conference room, bathroom, and kitchenette. The approximately 6,000-square-foot warehouse and office facility adds a reception area, five offices, two bathrooms, and an employee break area with sitting, dining, and kitchen zones.
Warehouse improvements include two workshop areas. One measures approximately 38'11" x 57'11" and has 17-foot ceilings. The second is approximately 59' x 26" and includes an 8-foot loading-dock door and an additional 8-foot garage door with drive-in access. A 1,363-square-foot mezzanine provides additional space beyond the warehouse floor area.
The property at 2408 Merchant St is approximately 0.4 miles from New Circle Road, 1.5 miles from Downtown Lexington, 2 miles from Frankfort Pike, and 2.5 miles from I-75. Built in 1989, it is zoned Other.
Warehouse improvements include two workshop areas. One measures approximately 38'11" x 57'11" and has 17-foot ceilings. The second is approximately 59' x 26" and includes an 8-foot loading-dock door and an additional 8-foot garage door with drive-in access. A 1,363-square-foot mezzanine provides additional space beyond the warehouse floor area.
The property at 2408 Merchant St is approximately 0.4 miles from New Circle Road, 1.5 miles from Downtown Lexington, 2 miles from Frankfort Pike, and 2.5 miles from I-75. Built in 1989, it is zoned Other.
Key Highlights
- Two‑building flex property at 2408 Merchant St, Lexington, KY 40510
- Approximately 6,000‑square‑foot warehouse and office facility
- 1,363‑square‑foot mezzanine not included in the 6,000 sq ft
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
$79,945
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
7.54%
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%
$1,598,900
$1.6M
Cap Rate 7%
$1,142,071
$1.1M
Cap Rate 9%
$888,278
$888.3K
Market Conditions
NOI Build-Up for 7,152 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
$128.7K $18.00/SF
− Vacancy
−$22.1K −$3.10/SF
EGI
$106.6K $14.90/SF
− OpEx
−$26.6K −$3.73/SF
NOI
$79.9K $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%
$1,598,900
Cap Rate 7%
$1,142,071
Cap Rate 9%
$888,278
Alternative Uses
Best Use
Office B
$1.14M
$999.3K – $1.33M
NOI $79,945 @ 7.0% cap · market cap 7.54%
Second Best
Flex RnD
$815.3K
$713.4K – $951.2K
NOI $57,069 @ 7.0% cap · market cap 5.38%
Theoretical Best
Office A
$1.49M
$1.30M – $1.74M
NOI $104,307 @ 7.0% cap · market cap 9.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
17 ft
Clear height
1
Dock-high doors
1
Drive-in doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 40510, KY
1,562
Population
426
Households
3.7
Avg Household Size
38
Median Age
27%
College-Educated
82%
High-School Grad
22.7 sq mi
ZIP Area
69
Density / Sq Mi
$155,625
Median Household Income
$23,250
Median Earnings
$725,000
Median Home Value
Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Flex space - Two-building commercial property combines private offices, workshops, loading access, and drive-in functionality for varied business operations.
Where is this flex space located?
The property is located at 2408 Merchant St Lexington, KY.
What is the asking price?
The asking price for this property is $1,060,000.
What are key features of this property?
This property features: Two‑building flex property at 2408 Merchant St, Lexington, KY 40510; Approximately 6,000‑square‑foot warehouse and office facility; 1,363‑square‑foot mezzanine not included in the 6,000 sq ft
