Corner Storefront
For Sale
$900,000
Pending
686 Montgomery Avenue, Lexington, KY 40505
COMMERCIAL - Lexington, KY
Property Size5,095 SF
Lot Size0.11 Acres
Days on Market632
Property Features for 686 Montgomery Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Light Industrial, C-Retail
Parking
5
Subdivision
Commercial
Directions
On the corner of East Seventh Street and Montgomery Avenue.
Standard status
Pending
APN
14850075
Size
5,095 SF
Lot size
0.11 Acres
Building Details
Year built
1956
Building materials
Block
Roof type
Shingle
Listing Agency:
CENTURY 21 Advantage Realty
(859) 624-5488
Listed By:
Traci Scott · License #208958
(859) 582-9675
Added: Nov 18, 2024
Changed: Aug 4
Last Checked: Aug 12 at 11:06AM
MLS# 24024274
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 storefront property contains 5,095 square feet on a 0.1097-acre site. Block construction and a shingle roof reflect the building’s 1956 construction. The property offers an existing commercial structure along with additional land associated with adjoining parcels.
Located at 686 Montgomery Avenue in Lexington, the property occupies a corner lot. Parcels 684 and 682 join the site, creating a larger combined area that can accommodate expansion or parking. The address is in Fayette County, within ZIP Code 40505.
Located at 686 Montgomery Avenue in Lexington, the property occupies a corner lot. Parcels 684 and 682 join the site, creating a larger combined area that can accommodate expansion or parking. The address is in Fayette County, within ZIP Code 40505.
Key Highlights
- 5,095‑square‑foot storefront property
- 0.1097‑acre corner lot
- Parcels 684 and 682 join the property
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
$48,482
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
5.39%
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%
$969,640
$969.6K
Cap Rate 7%
$692,600
$692.6K
Cap Rate 9%
$538,689
$538.7K
Market Conditions
NOI Build-Up for 5,095 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
$73.4K $14.40/SF
− Vacancy
−$4.1K −$0.81/SF
EGI
$69.3K $13.59/SF
− OpEx
−$20.8K −$4.08/SF
NOI
$48.5K $9.52/SF
Area
Lexington, KY
Vacancy
5.60%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$969,640
Cap Rate 7%
$692,600
Cap Rate 9%
$538,689
Alternative Uses
Best Use
Retail
$692.6K
$606.0K – $808.0K
NOI $48,482 @ 7.0% cap · market cap 5.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.06M
$928.8K – $1.24M
NOI $74,307 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
936
Businesses Nearby
64k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 50%
Dining 50%
McDonald's
Dining
19,329 visits/mo
0.4 miles
Thorntons
Shops & Services
10,395 visits/mo
0.4 miles
Hardee's
Dining
8,448 visits/mo
0.5 miles
Speedway
Shops & Services
6,590 visits/mo
0.2 miles
Marathon
Shops & Services
5,561 visits/mo
0.2 miles
Demographics for 40505, KY
26,278
Population
12,026
Households
2.2
Avg Household Size
39
Median Age
23%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,285
Density / Sq Mi
$58,922
Median Household Income
$33,517
Median Earnings
$914
Median Rent
$166,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Corner positioning with two adjoining parcels creates additional site area for expansion or parking.
Where is this storefront property located?
The property is located at 686 Montgomery Avenue Lexington, KY.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 5,095‑square‑foot storefront property; 0.1097‑acre corner lot; Parcels 684 and 682 join the property
