Three-Story Creative Workspace
For Sale
$1,390,000
438 S 3rd St, Louisville, KY 40202
Flexible interiors combine open work areas, enclosed offices, meeting rooms, and kitchens across multiple levels.
Property Size7,057 SF
Price / SF$196.97
Days on Market230
Property Features for 438 S 3rd St
General Information
Standard status
Active
Size
7,057 SF
Property subtype
Office
Zoning
C3
Amenities
outdoor patio
kitchenette
adjacent structured parking
Building Details
Buildings
1
Stories
3
Building Size
7,057 SF
Listing Agency:
Colliers
(502) 387-1957
Listed By:
Brigitte Owens
(502) 387-1957
Source:
Kcrea.resimplifi
Added: Jan 12
Changed: Aug 29
Last Checked: Aug 29 at 11:40PM
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 Colliers
Investment Insights
Based on property information with market context.
Located at 438 S. 3rd St. in Louisville’s Central Business District, this 7,057 SF creative workspace building extends across three stories. The layout combines broad collaborative areas with enclosed glass offices, conference and meeting rooms, reception space, multiple kitchens, and restrooms throughout the building.
The first floor includes open workspace, two private glass offices, a kitchen, two restrooms, and reception. The second level adds a conference room, executive office, additional meeting or office space, and a patio. Two private offices, a large meeting room, kitchen, and full bathroom occupy the third floor. The property is adjacent to the Omni Hotel and structured parking, with downtown dining and hospitality nearby. C3 zoning is identified for the property.
The first floor includes open workspace, two private glass offices, a kitchen, two restrooms, and reception. The second level adds a conference room, executive office, additional meeting or office space, and a patio. Two private offices, a large meeting room, kitchen, and full bathroom occupy the third floor. The property is adjacent to the Omni Hotel and structured parking, with downtown dining and hospitality nearby. C3 zoning is identified for the property.
Key Highlights
- 7,057 SF creative workspace building arranged over three stories
- Open work areas paired with private glass offices and conference rooms
- First floor includes reception, kitchen, two restrooms, and two private offices
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
$91,141
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
6.56%
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%
$1,822,820
$1.8M
Cap Rate 7%
$1,302,014
$1.3M
Cap Rate 9%
$1,012,678
$1.0M
Market Conditions
NOI Build-Up for 7,057 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
$148.2K $21.00/SF
− Vacancy
−$26.7K −$3.78/SF
EGI
$121.5K $17.22/SF
− OpEx
−$30.4K −$4.31/SF
NOI
$91.1K $12.92/SF
Area
Louisville, KY
Vacancy
18.00%
Lease Rate
$21.00 /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%
$1,822,820
Cap Rate 7%
$1,302,014
Cap Rate 9%
$1,012,678
Alternative Uses
Best Use
Office B
$1.30M
$1.14M – $1.52M
NOI $91,141 @ 7.0% cap · market cap 6.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.83M
$1.60M – $2.13M
NOI $128,042 @ 7.0% cap · market cap 9.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
10,389
Businesses Nearby
Explore this area
Business Placement
Demographics for 40202, KY
7,179
Population
4,242
Households
1.7
Avg Household Size
39
Median Age
27%
College-Educated
83%
High-School Grad
1.6 sq mi
ZIP Area
4,487
Density / Sq Mi
$29,382
Median Household Income
$33,205
Median Earnings
$881
Median Rent
$340,000
Median Home Value
Market
Vacancy Rate% for Office in Louisville, KY
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Creative space - Flexible interiors combine open work areas, enclosed offices, meeting rooms, and kitchens across multiple levels.
Where is this creative space located?
The property is located at 438 S 3rd St Louisville, KY.
What is the asking price?
The asking price for this property is $1,390,000.
What are key features of this property?
This property features: 7,057 SF creative workspace building arranged over three stories; Open work areas paired with private glass offices and conference rooms; First floor includes reception, kitchen, two restrooms, and two private offices
