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    Lexington Flex Space Available Title is generated by Realmo AI

    2428 Palumbo Drive, Lexington, KY 40509

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    For Lease
    $9 SF/Yr $2,911/Mo (calc)

    COMMERCIAL - Lexington, KY

    Property size:
    3,882 SF
    Lot size:
    1.03 Acres
    Added:
    May 1, 2025
    Days on Market:
    381
    Last Refresh:
    May 16 at 1:06 am

    Property Features for 2428 Palumbo Drive

    General Information

    Property type
    Commercial Lease
    Property subtype
    Other
    Parking
    55
    Standard status
    Active
    APN
    10478585
    Size
    3,882 SF
    Lot size
    1.03 Acres

    Building Details

    Year built
    1975
    Floors in Building
    1

    We can help!

    Listing Contact
    Peter Barr
    Peter Barr

    Listing agent Peter Barr License #208972

    Listing office Block + Lot Real Estate 133 W Short St, Lexington, KY

    Listing date May 1, 2025

    MLS# 25008990

    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.

    HighLights

    • Strategic location between New Circle Road and Man O War Blvd, with close proximity to I‑75/I‑64.
    • Versatile flex space with approximately 35% office and 65% warehouse areas.
    • Benefit from 16' clear height, 10' x 12' drive‑in door, and 3‑phase electric power.
    • Below‑market operating expenses.
    • Building signage available to tenants.
    • Approximately 45 parking spaces.

    Overview

    The property at 2428 Palumbo Drive is a 19,388 square foot flex/industrial facility situated on 1.03 acres. Constructed from concrete block in 1975 and renovated in 2012, the building is zoned I-1 (Light Industrial). Suite 120 offers a versatile space featuring approximately 35% office area and 65% warehouse space. The office component includes two private offices, an open office area, and a restroom. The warehouse area is equipped with a 10' x 12' drive-in door. The building features fluorescent lighting, a 16' clear height, and 3-phase electric power. Approximately 45 parking spaces are available, and building signage is available for tenants. The property is located between New Circle Road and Man O War Boulevard, offering close proximity to I-75 and I-64.
    Property Profile Insight Report Location Intelligence

    Current Use by Public Records

    VSR Industrial Manufacturer Triple Crown Auto ... Auto Repair Shop Bluegrass Bids Trade Show Venue Pipe Helper Factory

    Suggested Use

    Restaurant Real Estate Agency Law Firm Building Supply Dental Office Spa & Massage Center Big Box & Wholesale Store Auto Repair Shop Hair Salon Nail Salon

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Lexington
    County
    Fayette
    State
    Kentucky
    Longitude
    -84.448715
    Latitude
    38.019558

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    FAQs

    What type of property is this?
    Flex space - Versatile flex space with office and warehouse components for lease.
    Where is this flex space located?
    The property is located at 2428 Palumbo Drive Lexington, KY.
    What is the lease rate?
    The lease rate is $9 SF/Yr.
    What are key features of this property?
    This property features: Strategic location between New Circle Road and Man O War Blvd, with close proximity to I‑75/I‑64.; Versatile flex space with approximately 35% office and 65% warehouse areas.; Benefit from **16' clear height, 10' x 12' drive‑in door, and 3‑phase electric power.**
    (859) 351-7924
    We can help!
    Listing Contact
    Peter Barr
    Peter Barr
    Real Estate License ID: 208972
    Learn More
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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