Listing Agency: Weichert Realtors-H. Barry Smith Co. s***@hbarrysmith.com Show Phone

Listed By: Shawn Willard · License #203037

Source: Kcrea.resimplifi

Added: Jun 10 Changed: Aug 30 Last Checked: Aug 30 at 1:54PM

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Investment Insights

Based on property information with market context.

This office building is fully leased and has been updated with a professional interior design. The property carries O-1 Office and Institutional Zone zoning, supporting its established office classification.

Key Highlights

• Fully leased office building
• Updated interior design
• O‑1 Office and Institutional Zone zoning

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

$52,952

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

6.79%

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%

$1,059,040 $1.1M

Cap Rate 7%

$756,457 $756.5K

Cap Rate 9%

$588,356 $588.4K

Market Conditions

NOI Build-Up for 4,100 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

$86.1K $21.00/SF

− Vacancy

−$15.5K −$3.78/SF

EGI

$70.6K $17.22/SF

− OpEx

−$17.7K −$4.31/SF

NOI

$53.0K $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%

$1,059,040

Cap Rate 7%

$756,457

Cap Rate 9%

$588,356

Alternative Uses

Best Use

Office B

$756.5K

$661.9K – $882.5K (±1% cap)

NOI $52,952 @ 7.0% cap · market cap 6.79%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.06M

$929.9K – $1.24M (±1% cap)

NOI $74,390 @ 7.0% cap · market cap 9.54%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office buildings

Suggested Use

Top Pick HVAC Service Garden Center Electrical Service Kitchen & Bath Showroom Locksmith Plumbing Service

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

100%

Occupancy

Location Intelligence

Trade Area within ½ mile

1,016

Businesses Nearby

Explore this area Business Placement

Demographics for 40023, KY

5,956

Population

2,377

Households

2.5

Avg Household Size

44

Median Age

50%

College-Educated

99%

High-School Grad

24.3 sq mi

ZIP Area

245

Density / Sq Mi

$135,863

Median Household Income

$64,114

Median Earnings

$1,199

Median Rent

$430,200

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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Frequently Asked Questions

What type of property is this?

Office building - Fully leased office property with updated interiors and O-1 Office and Institutional zoning.

Where is this office building located?

The property is located at 6287 Taylorsville Rd Fisherville, KY.

What is the asking price?

The asking price for this property is $780,000.

What are key features of this property?

This property features: Fully leased office building; Updated interior design; O‑1 Office and Institutional Zone zoning