Prime Retail Development
For Sale
Contact for pricing
Pending
2440 Lone Oak Rd, Paducah, KY 42003
100,000 SF building on 8.5 acres near I-24.
Property Size100,000 SF
Lot Size8.50 Acres
Days on Market206
Property Features for 2440 Lone Oak Rd
General Information
Standard status
Pending
Size
100,000 SF
Lot size
8.50 Acres
Property subtype
Retail
Zoning
Highway Business District
Investment Type
Net Lease
Listing Agency:
PRG Commercial / Purchase Realty Group
Listed By:
Donnie McKinney · License #KY
Source:
Crexi
Added: Feb 7
Changed: Aug 24
Last Checked: Aug 29 at 11:25PM
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 PRG Commercial / Purchase Realty Group
Investment Insights
Based on property information with market context.
This property offers a retail development opportunity with a 100,000 square foot building situated on 8.5 acres. The location provides immediate access to I-24 and benefits from high traffic, with 25,741 cars per day. The property features a vast, open floor plan suitable for customization, particularly for a prominent anchor tenant. Smaller, complementary spaces offer synergistic potential, creating a dynamic retail destination. A customer demographic of 300,000 within the surrounding area provides a strong consumer base. The building includes high ceilings and a convenient truck dock.
Key Highlights
- Prime 8.5‑acre development site.
- High‑traffic location with 25,741 CPD.
- Immediate access to I‑24.
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
$1,093,260
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
5.08%
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%
$21,865,200
$21.9M
Cap Rate 7%
$15,618,000
$15.6M
Cap Rate 9%
$12,147,333
$12.1M
Market Conditions
NOI Build-Up for 100,000 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
$1.64M $16.44/SF
− Vacancy
−$82.2K −$0.82/SF
EGI
$1.56M $15.62/SF
− OpEx
−$468.5K −$4.69/SF
NOI
$1.09M $10.93/SF
Area
McCracken County, KY
Vacancy
5.00%
Lease Rate
$16.44 /SF/Yr
Expense Ratio
30.00%
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%
$21,865,200
Cap Rate 7%
$15,618,000
Cap Rate 9%
$12,147,333
Alternative Uses
Best Use
Retail
$15.62M
$13.67M – $18.22M
NOI $1,093,260 @ 7.0% cap · market cap 5.08%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$20.84M
$18.23M – $24.31M
NOI $1,458,498 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
572
Businesses Nearby
95k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 84%
Apparel 7%
Shops & Services 7%
Beauty & Spa 2%
McDonald's
Dining
30,041 visits/mo
0.2 miles
SONIC Drive In
Dining
11,466 visits/mo
0.3 miles
Arby's
Dining
9,389 visits/mo
0.4 miles
Scooter's Coffee
Dining
8,062 visits/mo
0.2 miles
Goodwill
Apparel
6,655 visits/mo
0.2 miles
Demographics for 42003, KY
28,592
Population
14,132
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
92%
High-School Grad
69.0 sq mi
ZIP Area
414
Density / Sq Mi
$54,052
Median Household Income
$33,566
Median Earnings
$696
Median Rent
$160,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - 100,000 SF building on 8.5 acres near I-24.
Where is this retail space located?
The property is located at 2440 Lone Oak Rd Paducah, KY.
What is the asking price?
The asking price for this property is $21,500,000.
What are key features of this property?
This property features: Prime 8.5‑acre development site.; High‑traffic location with 25,741 CPD.; Immediate access to I‑24.
