Two-Building Flex
New
For Sale
$499,000
26 N Highland Street, Winchester, KY 40391
Versatile commercial layout combines upgraded offices, warehouse areas, private parking, and rear alley access.
Property Size8,000 SF
Price / SF$62.38
Days on Market6
Property Features for 26 N Highland Street
General Information
Standard status
Active
Size
8,000 SF
Property subtype
Industrial
Zoning
B-2
Building Details
Year Built
1965
Listing Agency:
Block & Lot Real Estate
(859) 309-0099
Listed By:
Lara Thornbury · License #SL3587398
(859) 309-0099
Source:
Kcrea.resimplifi
Added: Aug 27
Changed: Aug 31
Last Checked: Aug 31 at 9:35AM
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 Block & Lot Real Estate
Investment Insights
Based on property information with market context.
This flex property includes two separate commercial buildings totaling 8,000 square feet on a 0.??-acre? site. The front structure is configured for professional office use with updated interior improvements, while original features remain above the drop ceiling, including tall ceilings and exposed metal trusses. Its prior warehouse configuration included a dock door, supporting potential repositioning for warehouse, showroom, flex, or mixed office and warehouse use.
The rear building has concrete flooring, tall ceilings, and two distinct warehouse areas. A private parking lot and rear alley access serve the property, adding practical functionality for office, storage, and business operations. Built in 1965 and zoned B-2, the property is located in downtown Winchester near retail and high-density residential surroundings.
The rear building has concrete flooring, tall ceilings, and two distinct warehouse areas. A private parking lot and rear alley access serve the property, adding practical functionality for office, storage, and business operations. Built in 1965 and zoned B-2, the property is located in downtown Winchester near retail and high-density residential surroundings.
Key Highlights
- Two‑building flex property with 8,000 square feet
- Front building configured as professional office space
- Rear building divided into two warehouse spaces
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
$43,992
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
8.82%
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%
$879,840
$879.8K
Cap Rate 7%
$628,457
$628.5K
Cap Rate 9%
$488,800
$488.8K
Market Conditions
NOI Build-Up for 8,000 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
$72.0K $9.00/SF
− Vacancy
−$4.3K −$0.54/SF
EGI
$67.7K $8.46/SF
− OpEx
−$23.7K −$2.96/SF
NOI
$44.0K $5.50/SF
Area
Clark County, KY
Vacancy
6.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
35.00%
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%
$879,840
Cap Rate 7%
$628,457
Cap Rate 9%
$488,800
Alternative Uses
Best Use
Office B
$1.61M
$1.41M – $1.87M
NOI $112,493 @ 7.0% cap · market cap 22.54%
Second Best
Warehouse
$821.8K
$719.1K – $958.8K
NOI $57,528 @ 7.0% cap · market cap 11.53%
Theoretical Best
Office A
$2.03M
$1.77M – $2.37M
NOI $141,926 @ 7.0% cap · market cap 28.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
659
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 40391, KY
36,461
Population
16,125
Households
2.3
Avg Household Size
41
Median Age
22%
College-Educated
90%
High-School Grad
237.3 sq mi
ZIP Area
154
Density / Sq Mi
$67,910
Median Household Income
$40,323
Median Earnings
$884
Median Rent
$197,200
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?
Flex space - Versatile commercial layout combines upgraded offices, warehouse areas, private parking, and rear alley access.
Where is this flex space located?
The property is located at 26 N Highland Street Winchester, KY.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: Two‑building flex property with 8,000 square feet; Front building configured as professional office space; Rear building divided into two warehouse spaces
