Flex Space with
For Sale
$249,900
506 N Main St, Winchester, KY 40391
Combined office and shop space with overhead doors, updated finishes, and dedicated blacktop parking.
Property Size550 SF
Price / SF$454.36
Days on Market16
Property Features for 506 N Main St
General Information
Standard status
Active
Size
550 SF
Warehouse & Industrial
Warehouse Space
1,500 SF
Office Build-Out
550 SF
Drive-In Doors
2
Additional Details
Highway Access
Yes
Listing Agency:
Century 21 Advantage Realty - Georgetown
(502) 557-8600
Listed By:
Susan B Wilburn
(859) 621-0424
Source:
Exprealty
Added: Aug 21
Changed: Sep 4
Last Checked: Sep 5 at 10:41AM
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 Century 21 Advantage Realty - Georgetown
Investment Insights
Based on property information with market context.
This flex property combines approximately 550 square feet of finished office space with approximately 1,500 square feet of shop and warehouse area. The office portion includes one restroom and can accommodate private office, reception, workspace, or storage functions. Fresh interior and exterior paint and new flooring provide updated finishes throughout.
The shop area is equipped with a gas heater, new LED lighting, and two 14' x 14' overhead doors with openers. A brand-new blacktop parking lot supports vehicle and equipment access. The property is convenient to I-64, Lexington, and surrounding Central Kentucky communities, with a configuration suited to a small business, contractor, or service-based operation.
The shop area is equipped with a gas heater, new LED lighting, and two 14' x 14' overhead doors with openers. A brand-new blacktop parking lot supports vehicle and equipment access. The property is convenient to I-64, Lexington, and surrounding Central Kentucky communities, with a configuration suited to a small business, contractor, or service-based operation.
Key Highlights
- Approximately 1,500 square feet of shop/warehouse space
- Approximately 550 square feet of finished office space with one restroom
- Two 14' x 14' overhead doors with openers
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
$7,734
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
3.09%
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%
$154,680
$154.7K
Cap Rate 7%
$110,486
$110.5K
Cap Rate 9%
$85,933
$85.9K
Market Conditions
NOI Build-Up for 550 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
$11.9K $21.60/SF
− Vacancy
−$1.6K −$2.85/SF
EGI
$10.3K $18.75/SF
− OpEx
−$2.6K −$4.69/SF
NOI
$7.7K $14.06/SF
Area
Clark County, KY
Vacancy
13.20%
Lease Rate
$21.60 /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%
$154,680
Cap Rate 7%
$110,486
Cap Rate 9%
$85,933
Alternative Uses
Best Use
Office B
$110.5K
$96.7K – $128.9K
NOI $7,734 @ 7.0% cap · market cap 3.09%
Second Best
Warehouse
$56.5K
$49.4K – $65.9K
NOI $3,955 @ 7.0% cap · market cap 1.58%
Theoretical Best
Office A
$139.4K
$122.0K – $162.6K
NOI $9,757 @ 7.0% cap · market cap 3.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
221
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 - Combined office and shop space with overhead doors, updated finishes, and dedicated blacktop parking.
Where is this flex space located?
The property is located at 506 N Main St Winchester, KY.
What is the asking price?
The asking price for this property is $249,900.
What are key features of this property?
This property features: Approximately 1,500 square feet of shop/warehouse space; Approximately 550 square feet of finished office space with one restroom; Two 14' x 14' overhead doors with openers
