Office Building with Fire
For Sale
$3,250,000
3108 Fairview Dr, Owensboro, KY 42303
COMMERCIAL - Owensboro, KY
Property Size25,000 SF
Lot Size2.70 Acres
Price / SF$130
Days on Market274
Property Features for 3108 Fairview Dr
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
EAST
Standard status
Active
Lot size
2.70 Acres
Utilities
Heating system
Natural Gas
Cooling system
Central Air, Electric
Building Details
Year built
1991
Number of units
3
Building materials
Steel Frame
Listing Agency:
BHG Realty
(270) 240-1501
Listed By:
John Ross Martin · License #300719
(270) 608-2412
Added: Nov 18, 2025
Changed: Aug 12
Last Checked: Aug 19 at 11:06AM
MLS# 93643
Copyright © 2026 Greater Owensboro Realtor® Association. 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 office building offers a government-office style setup with 25,000+ SF of space and steel frame construction. Built in 1991, it is served by natural gas heating with central air and electric cooling, and includes a fire suppression system for added safety.
The property sits on a 2.7-acre lot. A new roof is scheduled for 2025, supporting lower-maintenance operations. The listing also notes performance metrics including a 7% cap rate.
With the lot size and existing buildout, the site is positioned for continued use as an office facility, with the potential to accommodate additional buildings on the property.
The property sits on a 2.7-acre lot. A new roof is scheduled for 2025, supporting lower-maintenance operations. The listing also notes performance metrics including a 7% cap rate.
With the lot size and existing buildout, the site is positioned for continued use as an office facility, with the potential to accommodate additional buildings on the property.
Key Highlights
- 25,000+ SF office building with fire suppression system
- 2.7‑acre lot with space for additional buildings
- Steel frame construction
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
$191,250
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
5.88%
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%
$3,825,000
$3.8M
Cap Rate 7%
$2,732,143
$2.7M
Cap Rate 9%
$2,125,000
$2.1M
Market Conditions
NOI Build-Up for 25,000 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
$300.0K $12.00/SF
− Vacancy
−$45.0K −$1.80/SF
EGI
$255.0K $10.20/SF
− OpEx
−$63.8K −$2.55/SF
NOI
$191.3K $7.65/SF
Area
Daviess County, KY
Vacancy
15.00%
Lease Rate
$12.00 /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%
$3,825,000
Cap Rate 7%
$2,732,143
Cap Rate 9%
$2,125,000
Alternative Uses
Best Use
Office B
$2.73M
$2.39M – $3.19M
NOI $191,250 @ 7.0% cap · market cap 5.88%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.48M
$3.92M – $5.22M
NOI $313,385 @ 7.0% cap · market cap 9.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
535
Businesses Nearby
Explore this area
Business Placement
Demographics for 42303, KY
41,877
Population
18,055
Households
2.3
Avg Household Size
39
Median Age
26%
College-Educated
89%
High-School Grad
48.8 sq mi
ZIP Area
858
Density / Sq Mi
$63,010
Median Household Income
$41,272
Median Earnings
$941
Median Rent
$183,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building on a 2.7-acre lot with fire suppression and central air, featuring a roof replacement scheduled for 2025.
Where is this office building located?
The property is located at 3108 Fairview Dr Owensboro, KY.
What is the asking price?
The asking price for this property is $3,250,000.
What are key features of this property?
This property features: 25,000+ SF office building with fire suppression system; 2.7‑acre lot with space for additional buildings; Steel frame construction
