Medical Office
New
For Sale
$350,000
535 Wellington Way, Lexington, KY 40503
Commercial Sale, Lexington, KY
Property Size1,661 SF
Lot Size1.54 Acres
Price / SF$210.72
Days on Market2
Property Features for 535 Wellington Way
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
P-1 Professional Office
Directions
Nicholasville Road outbound to a right on W. Reynolds Road, to a right on Wellington Way
Subdivision
004 - Fayette County SW
Standard status
Active
APN
38215700
Size
1,661 SF
Lot size
1.54 Acres
Building Details
Year built
2008
Listing Agency:
Block + Lot Homes
(859) 309-0099
Listed By:
Lewis P Mclean
(859) 806-0161
Added: Sep 15
Changed: Sep 16
Last Checked: Sep 16 at 12:06AM
MLS# 26025457
Copyright © 2026 ImagineMLS. 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 1,661-square-foot medical office condominium was built in 2008 and offers a practical layout for healthcare or professional office operations. The perimeter unit includes a reception area, open work areas, five offices, an X-ray room, and plumbing distributed throughout the space. Abundant natural light enters from the exterior-facing position, and the property was formerly used by an orthodontic practice.
The condominium is located at 535 Wellington Way in Lexington, Kentucky, within ZIP Code 40503 and Fayette County. The associated property record identifies a 1.54-acre lot size for the site. Its existing room arrangement and plumbing infrastructure provide a ready framework for continued medical use or conversion to another office configuration.
The condominium is located at 535 Wellington Way in Lexington, Kentucky, within ZIP Code 40503 and Fayette County. The associated property record identifies a 1.54-acre lot size for the site. Its existing room arrangement and plumbing infrastructure provide a ready framework for continued medical use or conversion to another office configuration.
Key Highlights
- 1,661 SF medical office condominium
- Built in 2008
- Perimeter unit with abundant natural light
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
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
980
Businesses Nearby
Under-served
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office condominium with bright perimeter positioning, multiple private rooms, reception space, and plumbing throughout.
Where is this medical office space 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 medical office condominium; Built in 2008; Perimeter unit with abundant natural light
