Frankfort is the capital of Kentucky and the seat of Franklin County, and its commercial property market is shaped by that. The Kentucky River divides the city, the Capitol and state offices anchor the center, and a distillery just north of downtown ties the area to the bourbon trade. Winner Realty helps owners, investors, and operators buy, sell, and lease commercial property in Frankfort. This page covers where property sits, how local planning works, and what to check first.

Where commercial property is in Frankfort

The river is the first thing to understand. Downtown and South Frankfort sit on opposite banks, so a property's side of the river affects its access and surroundings. Downtown is the historic center, with the Kentucky State Capitol Historic District and older buildings that have drawn restoration work for years. A 2005 Federal Reserve Bank of St. Louis profile described a facade-improvement program in which 27 building owners took part, and noted restaurants and shops in Victorian-style buildings.

Beyond downtown, the main routes are U.S. 60 and U.S. 460 running east to west and U.S. 127 and U.S. 421 running north to south. Interstate 64 runs south of the city, and Interstate 75 is nearby. Lexington's Blue Grass Airport is about 22 miles southeast, and Capital City Airport handles general and military aviation.

• Downtown and the Capitol area: offices, restaurants, shops, and historic buildings
• South Frankfort, across the river: its own mix of commercial and historic property
• U.S. 127, U.S. 60, and U.S. 421 corridors: roadside and service commercial sites

What drives demand here

State government is the defining driver. As of 2016, public administration was the city's largest industry, employing about 28 percent of the workforce. The 2005 Fed profile counted more than 11,000 state workers in the county, roughly 42 percent of the local workforce at that time. Those numbers are dated, but the pattern holds: offices, restaurants, and services near the Capitol depend on a steady daytime population, and demand for office space is tied to what state agencies do with their own buildings.

A visible local example is the Capital Plaza complex, which was demolished in 2018 and replaced in 2019 by the smaller Mayo-Underwood Building. That swap shows how state decisions can move the downtown footprint.

Bourbon is the second driver. Frankfort has three distilleries, Buffalo Trace, Castle and Key, and Three Boys Farm, and Buffalo Trace sits just north of downtown on a 110-acre site. Manufacturing accounted for more than 12 percent of the city workforce in 2016, and Kentucky State University is inside city limits. Frankfort is also the center of a micropolitan area that includes Franklin and Anderson counties.

Zoning and permits in Frankfort

Planning and zoning here run through Franklin County's Planning, Zoning and Building Code Enforcement office, located at 321 West Main Street in Frankfort. Staff administer the Franklin County Zoning Ordinance and the Frankfort and Franklin County Subdivision and Development Plan Regulations, and the office handles building, electrical, and zoning permits. An online portal and a sign permit form are available through the county's site.

• The Planning Commission and the Board of Zoning Adjustment both publish agendas through the city site.
• Building permits and electrical permits are separate from zoning permits, so ask which ones your project needs.
• Floodplain questions matter in a river city, and the county site links flood information.

Zoning district names and allowed uses are set in the ordinance, so confirm the district for a specific parcel with the office instead of relying on a listing. The Franklin County Property Valuation Administrator, at 313 West Main Street, handles property assessments.

Types of commercial property you will find

• Downtown office buildings and historic storefronts
• Restaurant and retail space in older buildings and along the main routes
• Professional and government-adjacent office space
• Industrial and manufacturing property, tied to the area's manufacturers and distilleries
• Development land listed for sale around the city
• Apartment buildings and other properties with two or more units, which count as commercial property

Investors often start with income property math, so our guide to cap rates helps. Because many Frankfort buildings are historic, plan time for inspections using the due diligence checklist.

Buying or selling a business that owns its building

Downtown restaurants, shops, and offices are often owner-operated. When the owner sells the business and the building together, the deal has to address the operation, the real estate, and sometimes a lease-back or phased transfer. See our guide to buying or selling a business with real estate. If you own a building and want a number to work from, request a free commercial property valuation.

Working with Winner Realty in Frankfort

Winner Realty is a Louisville brokerage led by owner-Realtor Rob Bergeron. In Frankfort we help with property searches, listing strategy, and preparing the right questions for the county planning office, lenders, and title. Real estate licensing in Kentucky is governed by KRS Chapter 324.

For financing, see commercial real estate loans in Kentucky. For the larger metro to the west, start with our Louisville commercial real estate page, and for a nearby market see the Shelbyville page.

Frequently asked questions

Who handles zoning in Frankfort?

Franklin County's Planning, Zoning and Building Code Enforcement office, at 321 West Main Street, administers the Franklin County Zoning Ordinance and the Frankfort and Franklin County Subdivision and Development Plan Regulations.

Does being the state capital change the market?

State government is the largest employer in the area, so office and downtown service demand is linked to it. We do not publish vacancy or rent figures here because they change; ask us for current information on a specific building.

Does the river matter when I buy?

The Kentucky River divides the city, and floodplain questions are part of local permitting. Review flood information for the exact parcel during due diligence.

Where do I look up assessed value and ownership?

The Franklin County Property Valuation Administrator assesses property for taxation, with offices on West Main Street in Frankfort.

Have a Frankfort property in mind? Use the commercial inquiry form, or text or email Rob at (502) 305-8915 or Rob@thewinnerrealty.com.

This page is general information, not legal advice. Talk with a Kentucky real estate attorney about your specific deal.