Two-Tenant Mixed-Use
For Sale
$650,000
763 Lane Allen Rd, Lexington, KY 40504
Renovated commercial property with separate occupancies, below-grade areas, parking improvements, and B-1 zoning.
Property Size4,484 SF
Price / SF$244.91
Days on Market284
Property Features for 763 Lane Allen Rd
General Information
Standard status
Active
Size
4,484 SF
Property subtype
Retail
Zoning
B-1
Occupancy
100%
Additional Details
Office Units
2
Building Details
Year Built
1952
Buildings
1
Building Size
4,484 SF
Tenancy
Multi
Owner Occupied
Yes
Listing Agency:
The Gibson Company
(859) 321-3552
Listed By:
Christa Collins · License #KY 57836
(859) 321-3552
Source:
Kcrea.resimplifi
Added: Nov 19, 2025
Changed: Aug 29
Last Checked: Aug 29 at 1:56PM
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 The Gibson Company
Investment Insights
Based on property information with market context.
Built in 1952, this mixed-use property provides two separately accessed commercial sides with approximately 1,327 square feet on each level for a combined 2,654 square feet above grade. One side is configured as a contractor office with reception, private offices, and a kitchen; the other has operated as a salon. The property also includes 1,830 square feet below grade, divided into two areas of approximately 915 square feet each, with meeting and storage uses. A B-1 zoning designation supports an array of uses.
Recent work includes interior renovation with updated paint, flooring, and smooth ceilings, along with exterior repairs and painting. The site also has a new fence, expanded and restriped paved parking, rooftop solar panels, two rear staircases, and a new AC unit serving the 763 Lane Allen Rd side. The building is across from Home Depot and near the Broadway/Harrodsburg Rd intersection in Lexington.
Recent work includes interior renovation with updated paint, flooring, and smooth ceilings, along with exterior repairs and painting. The site also has a new fence, expanded and restriped paved parking, rooftop solar panels, two rear staircases, and a new AC unit serving the 763 Lane Allen Rd side. The building is across from Home Depot and near the Broadway/Harrodsburg Rd intersection in Lexington.
Key Highlights
- 2,654 SF above grade plus 1,830 SF of below‑grade space
- Two commercial sides with approximately 1,327 SF each
- B‑1 zoning supports an array of uses
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
$29,666
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
4.56%
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%
$593,320
$593.3K
Cap Rate 7%
$423,800
$423.8K
Cap Rate 9%
$329,622
$329.6K
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
$47.8K $18.00/SF
− Vacancy
−$8.2K −$3.10/SF
EGI
$39.6K $14.90/SF
− OpEx
−$9.9K −$3.73/SF
NOI
$29.7K $11.18/SF
Area
Lexington, KY
Vacancy
17.20%
Lease Rate
$18.00 /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%
$593,320
Cap Rate 7%
$423,800
Cap Rate 9%
$329,622
Alternative Uses
Best Use
Office B
$423.8K
$370.8K – $494.4K
NOI $29,666 @ 7.0% cap · market cap 4.56%
Second Best
Retail
$360.8K
$315.7K – $420.9K
NOI $25,254 @ 7.0% cap · market cap 3.89%
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
2
Office units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,514
Businesses Nearby
Explore this area
Business Placement
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Renovated commercial property with separate occupancies, below-grade areas, parking improvements, and B-1 zoning.
Where is this mixed-use property located?
The property is located at 763 Lane Allen Rd 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: 2,654 SF above grade plus 1,830 SF of below‑grade space; Two commercial sides with approximately 1,327 SF each; B‑1 zoning supports an array of uses
