Office Unit with Medical
For Sale
$350,000
535 Wellington Way, Lexington, KY 40503
Configured for medical, dental, or professional office use with five offices and plumbing throughout.
Property Size1,661 SF
Price / SF$210.72
Days on Market8
Property Features for 535 Wellington Way
General Information
Standard status
Active
Size
1,661 SF
Property subtype
Commercial
Building Details
Year Built
2008
Listing Agency:
RE/MAX Creative Realty
Listed By:
Lake Cumberland Real Estate Professional
(606) 677-0059
Source:
Lakecumberlandky
Added: Sep 16
Changed: Sep 20
Last Checked: Sep 22 at 4:34PM
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 RE/MAX Creative Realty
Investment Insights
Based on property information with market context.
This 1,661-square-foot office condominium at 535 Wellington Way includes a reception area, open work areas, five private offices, and an X-ray room. Plumbing throughout supports medical or dental operations, while the perimeter position brings natural light into the unit. Built in 2008, the property can also accommodate professional office use.
Located in Lexington’s Wellington area, the unit combines a defined reception function with flexible work areas and specialized medical improvements. Its office layout and existing plumbing provide a practical configuration for a range of professional users.
Located in Lexington’s Wellington area, the unit combines a defined reception function with flexible work areas and specialized medical improvements. Its office layout and existing plumbing provide a practical configuration for a range of professional users.
Key Highlights
- 1,661 SF office condominium at 535 Wellington Way
- Perimeter office with abundant natural light
- Five offices plus reception and open work areas
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
$22,028
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
6.29%
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%
$440,560
$440.6K
Cap Rate 7%
$314,686
$314.7K
Cap Rate 9%
$244,756
$244.8K
Market Conditions
NOI Build-Up for 1,661 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
$33.9K $20.40/SF
− Vacancy
−$4.5K −$2.72/SF
EGI
$29.4K $17.68/SF
− OpEx
−$7.3K −$4.42/SF
NOI
$22.0K $13.26/SF
Area
ZIP 40503
Vacancy
13.32%
Lease Rate
$20.40 /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%
$440,560
Cap Rate 7%
$314,686
Cap Rate 9%
$244,756
Alternative Uses
Best Use
Office B
$314.7K
$275.4K – $367.1K
NOI $22,028 @ 7.0% cap · market cap 6.29%
Second Best
Healthcare Medical
$267.2K
$233.8K – $311.7K
NOI $18,704 @ 7.0% cap · market cap 5.34%
Theoretical Best
Office A
$346.1K
$302.8K – $403.8K
NOI $24,225 @ 7.0% cap · market cap 6.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
980
Businesses Nearby
Explore this area
Business Placement
Demographics for 40503, KY
28,073
Population
13,437
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
8.8 sq mi
ZIP Area
3,190
Density / Sq Mi
$74,161
Median Household Income
$43,061
Median Earnings
$1,110
Median Rent
$280,000
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?
Office units - Configured for medical, dental, or professional office use with five offices and plumbing throughout.
Where is this office units located?
The property is located at 535 Wellington Way Lexington, KY.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 1,661 SF office condominium at 535 Wellington Way; Perimeter office with abundant natural light; Five offices plus reception and open work areas
