Listing Agency: BERKSHIRE HATHAWAY HomeServices, Parks & Weisberg Realtors b***@bhhspw.com Show Phone

Listed By: Brian McDonald · License #KENTUCKY266921 Show Phone

Source: Kcrea.resimplifi

Added: Mar 6 Changed: Aug 30 Last Checked: Aug 30 at 1:29AM

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Investment Insights

Based on property information with market context.

This 7,680-square-foot flex property at 602 Pendleton Rd includes warehouse and office space within a commercial building. The layout supports both storage-oriented and administrative functions, with the property historically used by a fuel delivery company.

The site is positioned at an interstate exit and between three communities, providing access to surrounding markets and regional transportation routes. B2 zoning further identifies the property for commercial use, while the combination of warehouse and office areas accommodates businesses requiring both operational and administrative space.

Key Highlights

• 7,680‑square‑foot flex property
• B2 zoning
• Combination of warehouse and office space

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

$94,653

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

7.28%

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%

$1,893,060 $1.9M

Cap Rate 7%

$1,352,186 $1.4M

Cap Rate 9%

$1,051,700 $1.1M

Market Conditions

NOI Build-Up for 7,680 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

$153.9K $20.04/SF

− Vacancy

−$27.7K −$3.61/SF

EGI

$126.2K $16.43/SF

− OpEx

−$31.6K −$4.11/SF

NOI

$94.7K $12.32/SF

Area

Henry County, KY

Vacancy

18.00%

Lease Rate

$20.04 /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%

$1,893,060

Cap Rate 7%

$1,352,186

Cap Rate 9%

$1,051,700

Alternative Uses

Best Use

Office B

$1.35M

$1.18M – $1.58M (±1% cap)

NOI $94,653 @ 7.0% cap · market cap 7.28%

Second Best

Warehouse

$941.7K

$824.0K – $1.10M (±1% cap)

NOI $65,920 @ 7.0% cap · market cap 5.07%

Theoretical Best

Office A

$1.62M

$1.42M – $1.89M (±1% cap)

NOI $113,335 @ 7.0% cap · market cap 8.72%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick HVAC Service (Bike/Boat/Book/etc) Store Big Box & Wholesale Store Parking Lot & Garage Pharmacy Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

51

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 40055, KY

2,070

Population

1,040

Households

2

Avg Household Size

45

Median Age

15%

College-Educated

89%

High-School Grad

23.6 sq mi

ZIP Area

88

Density / Sq Mi

$83,401

Median Household Income

$48,101

Median Earnings

$1,096

Median Rent

$193,900

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - B2-zoned commercial property combining warehouse and office space for a range of business operations.

Where is this flex space located?

The property is located at 602 Pendleton Rd Pendleton, KY.

What is the asking price?

The asking price for this property is $1,300,000.

What are key features of this property?

This property features: 7,680‑square‑foot flex property; B2 zoning; Combination of warehouse and office space