Owensboro Office Building For
For Sale
$621,000
726 Harvard Drive, Owensboro, KY 42301
Office building for sale featuring a long-term committed tenant.
Property Size2,498 SF
Price / SF$248.60
Days on Market101
Property Features for 726 Harvard Drive
General Information
Standard status
Active
Size
2,498 SF
Class
A
Property subtype
Office
Building Details
Building Size
2,498 SF
Year Built
1990
Listing Agency:
Barron Commercial Group
Listed By:
Bo Barron, CCIM · License #KY #207674
(270) 313-2444
Source:
Barroncommercial
Added: May 27
Changed: Sep 4
Last Checked: Sep 2 at 12:31AM
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 Barron Commercial Group
Investment Insights
Based on property information with market context.
This commercial property is an office building featuring a long-term tenant, Benchmark Family Services, which provides essential, government-backed services. The property operates on a net lease structure, where the tenant is responsible for all maintenance and repairs. The lease includes predictable rent growth with CPI-adjusted increases at the start of each renewal term. The property contains 2498 square feet.
Key Highlights
- Long‑Term Tenant: Provides stable, reliable income.
- Net Lease Structure: Minimizes landlord responsibilities and expenses.
- Predictable Rent Growth: CPI‑adjusted increases ensure income keeps pace with inflation.
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
$19,110
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
3.08%
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%
$382,200
$382.2K
Cap Rate 7%
$273,000
$273.0K
Cap Rate 9%
$212,333
$212.3K
Market Conditions
NOI Build-Up for 2,498 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
$30.0K $12.00/SF
− Vacancy
−$4.5K −$1.80/SF
EGI
$25.5K $10.20/SF
− OpEx
−$6.4K −$2.55/SF
NOI
$19.1K $7.65/SF
Area
Daviess County, KY
Vacancy
15.00%
Lease Rate
$12.00 /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%
$382,200
Cap Rate 7%
$273,000
Cap Rate 9%
$212,333
Alternative Uses
Best Use
Office B
$273.0K
$238.9K – $318.5K
NOI $19,110 @ 7.0% cap · market cap 3.08%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$447.3K
$391.4K – $521.9K
NOI $31,313 @ 7.0% cap · market cap 5.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
717
Businesses Nearby
Explore this area
Business Placement
Demographics for 42301, KY
44,883
Population
19,833
Households
2.3
Avg Household Size
39
Median Age
26%
College-Educated
91%
High-School Grad
173.0 sq mi
ZIP Area
259
Density / Sq Mi
$62,010
Median Household Income
$37,305
Median Earnings
$883
Median Rent
$180,600
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 building - Office building for sale featuring a long-term committed tenant.
Where is this office building located?
The property is located at 726 Harvard Drive Owensboro, KY.
What is the asking price?
The asking price for this property is $621,000.
What are key features of this property?
This property features: Long‑Term Tenant: Provides stable, reliable income.; Net Lease Structure: Minimizes landlord responsibilities and expenses.; Predictable Rent Growth: CPI‑adjusted increases ensure income keeps pace with inflation.
