Multi-Tenant Retail
For Sale
$650,000
763-765 Lane Allen Road, Lexington, KY 40504
COMMERCIAL - Lexington, KY
Property Size2,654 SF
Lot Size0.21 Acres
Price / SF$244.91
Days on Market256
Property Features for 763-765 Lane Allen Road
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
B-1
Zoning description
Neighborhood Business
Rooms
Basement
Parking
16
Basement
Full, Partially Finished, Exterior Entry, Walk-Out Access
Subdivision
Commercial
Directions
Harrodsburg Road to Lane Allen; across from Home Depot.
Standard status
Active
APN
25932000
Size
2,654 SF
Lot size
0.21 Acres
Building Details
Year built
1952
Floors in Building
3
Listing Agency:
The Gibson Company
(859) 224-8833
Listed By:
Christa Collins · License #239962
(859) 321-3552
Added: Dec 1, 2025
Changed: Aug 4
Last Checked: Aug 14 at 5:06AM
MLS# 25507333
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 multi-tenant retail building is offered for sale with two private tenant entrances and street-level and upper-level space. The property includes approximately 2,654 square feet above grade and an additional 1,830 square feet below grade, configured as two separate spaces of roughly 915 square feet each. The below-grade areas are currently used as a meeting area in one space and storage/contractor space in the other. Suite 765 is owner occupied and functions as a contractor office with a reception area, private offices, and a kitchen. Suite 763 has been tenant occupied as a salon space for many years.
The building is located on a high-visibility portion of Lane Allen Road, across the street from Home Depot, and near the Broadway/Harrodsburg Road intersection.
Recent upgrades include complete renovation of the interior spaces with new paint, flooring, and smooth ceilings, repairs and painting of the exterior, new fencing and exterior paint, an enlarged parking lot with new paving and striping, and solar panels installed on the roof. Two new staircases were added at the back entrances, and a new AC unit was installed in suite 763 on the Lane Allen side. The property is zoned B-1, supporting a range of uses.
The building is located on a high-visibility portion of Lane Allen Road, across the street from Home Depot, and near the Broadway/Harrodsburg Road intersection.
Recent upgrades include complete renovation of the interior spaces with new paint, flooring, and smooth ceilings, repairs and painting of the exterior, new fencing and exterior paint, an enlarged parking lot with new paving and striping, and solar panels installed on the roof. Two new staircases were added at the back entrances, and a new AC unit was installed in suite 763 on the Lane Allen side. The property is zoned B-1, supporting a range of uses.
Key Highlights
- High visibility location on Lane Allen Rd, across from Home Depot
- B‑1 zoning allows for a variety of uses
- Income potential from tenant‑occupied salon space (763 Lane Allen)
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
$25,254
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
3.89%
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%
$505,080
$505.1K
Cap Rate 7%
$360,771
$360.8K
Cap Rate 9%
$280,600
$280.6K
Market Conditions
NOI Build-Up for 2,654 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
$38.2K $14.40/SF
− Vacancy
−$2.1K −$0.81/SF
EGI
$36.1K $13.59/SF
− OpEx
−$10.8K −$4.08/SF
NOI
$25.3K $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%
$505,080
Cap Rate 7%
$360,771
Cap Rate 9%
$280,600
Alternative Uses
Best Use
Retail
$360.8K
$315.7K – $420.9K
NOI $25,254 @ 7.0% cap · market cap 3.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$553.0K
$483.8K – $645.1K
NOI $38,707 @ 7.0% cap · market cap 5.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
806
Businesses Nearby
233k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 63%
Home Improvements & Furnishings 18%
Shops & Services 9%
Superstores 6%
Chick-fil-A
Dining
44,772 visits/mo
0.4 miles
The Home Depot
Home Improvements & Furnishings
42,054 visits/mo
0.3 miles
McDonald's
Dining
31,453 visits/mo
0.5 miles
Raising Cane's Chicken Fingers
Dining
31,087 visits/mo
0.5 miles
LongHorn Steakhouse
Dining
16,571 visits/mo
0.4 miles
Demographics for 40504, KY
26,042
Population
13,175
Households
2
Avg Household Size
34
Median Age
32%
College-Educated
84%
High-School Grad
6.2 sq mi
ZIP Area
4,200
Density / Sq Mi
$43,015
Median Household Income
$29,195
Median Earnings
$888
Median Rent
$209,400
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?
Retail space - Multi-tenant retail building with two private entrances and renovated interior spaces, plus below-grade storage and meeting space.
Where is this retail space located?
The property is located at 763-765 Lane Allen Road Lexington, KY.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: High visibility location on Lane Allen Rd, across from Home Depot; B‑1 zoning allows for a variety of uses; Income potential from tenant‑occupied salon space (763 Lane Allen)
