Standalone Office
For Sale
$2,499,000
40420 W 10th Street, Palmdale, CA 93551
Commercial Sale, Palmdale, CA
Property Size3,958 SF
Lot Size1.85 Acres
Price / SF$631.38
Days on Market27
Property Features for 40420 W 10th Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
PDC2*
Lot features
Corner Lot
Directions
North on 14fwy. Exit Rancho Vista Blvd. West/Left on Rancho Vista Blvd. North/Right on 10th St West. Building is on the Northeast corner of 10th St West & Ave O.
Subdivision
08 - Palm Div to 110th W
Standard status
Active
APN
3005-002-017
Size
3,958 SF
Lot size
1.85 Acres
Utilities
Utilities
Natural Gas Available
Cooling system
Central Air
Building Details
Year built
1971
Floors in Building
1
Building materials
Stucco, Wood Siding, Shingle Siding
Roof type
Tile
Listing Agency:
RE/MAX All-Pro · RE/MAX International
(661) 945-9461
Listed By:
Priyam Rajapaksa · License #01789155
(661) 886-3692
Added: Aug 5
Changed: Aug 19
Last Checked: Aug 31 at 4:06PM
MLS# 26006082
Copyright © 2026 Greater Antelope Valley Association of Realtors. 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 standalone office building contains 3,958 square feet on a 1.85-acre parcel at 40420 W 10th Street. The property was built in 1971 and includes central air conditioning, tile roofing, stucco and siding construction materials, and natural gas availability. Zoning is designated PDC2*.
The site is positioned at 10th Street West and Avenue O, with major retail destinations including Walmart, Sam’s Club, and Antelope Valley Mall nearby. A Trader Joe’s mega warehouse is also located on 10th Street West, while the 14-Freeway is only minutes away.
The existing building is marketed as a standalone commercial improvement, with the source information also identifying restaurant and drive-through concepts as possible future uses. Two additional 2.5-acre parcels behind the building on Avenue O are separately available and carry light-industrial zoning.
The site is positioned at 10th Street West and Avenue O, with major retail destinations including Walmart, Sam’s Club, and Antelope Valley Mall nearby. A Trader Joe’s mega warehouse is also located on 10th Street West, while the 14-Freeway is only minutes away.
The existing building is marketed as a standalone commercial improvement, with the source information also identifying restaurant and drive-through concepts as possible future uses. Two additional 2.5-acre parcels behind the building on Avenue O are separately available and carry light-industrial zoning.
Key Highlights
- 3,958 square feet on 1.85 acres
- Standalone commercial building built in 1971
- PDC2* zoning designation
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
$85,578
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
3.42%
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%
$1,711,560
$1.7M
Cap Rate 7%
$1,222,543
$1.2M
Cap Rate 9%
$950,867
$950.9K
Market Conditions
NOI Build-Up for 3,958 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
$135.8K $34.32/SF
− Vacancy
−$21.7K −$5.49/SF
EGI
$114.1K $28.83/SF
− OpEx
−$28.5K −$7.21/SF
NOI
$85.6K $21.62/SF
Area
Palmdale, CA
Vacancy
16.00%
Lease Rate
$34.32 /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%
$1,711,560
Cap Rate 7%
$1,222,543
Cap Rate 9%
$950,867
Alternative Uses
Best Use
Office B
$1.22M
$1.07M – $1.43M
NOI $85,578 @ 7.0% cap · market cap 3.42%
Second Best
Specialty Retail
$1.11M
$972.9K – $1.30M
NOI $77,834 @ 7.0% cap · market cap 3.11%
Theoretical Best
Office A
$1.67M
$1.46M – $1.95M
NOI $116,985 @ 7.0% cap · market cap 4.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
224
Businesses Nearby
Explore this area
Business Placement
Demographics for 93551, CA
56,001
Population
17,940
Households
3.1
Avg Household Size
38
Median Age
30%
College-Educated
87%
High-School Grad
84.8 sq mi
ZIP Area
660
Density / Sq Mi
$110,850
Median Household Income
$55,882
Median Earnings
$2,263
Median Rent
$548,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Commercial improvement with central air, tile roofing, natural gas availability, and proximity to major retail destinations and the 14-Freeway.
Where is this office building located?
The property is located at 40420 W 10th Street Palmdale, CA.
What is the asking price?
The asking price for this property is $2,499,000.
What are key features of this property?
This property features: 3,958 square feet on 1.85 acres; Standalone commercial building built in 1971; PDC2* zoning designation
