Mixed-Use Property in
For Sale
$1,495,000
12106 Palm Dr, Desert Hot Springs, CA 92240
Multi-use property with retail, office, and residential spaces.
Property Size6,000 SF
Lot Size0.33 Acres
Price / SF$272.51
Days on Market164
Property Features for 12106 Palm Dr
General Information
Standard status
Active
Size
6,000 SF
Class
B
Lot size
0.33 Acres
Property subtype
Mixed Use
Building Details
Building Size
6,000 SF
Year Built
1974
Listing Agency:
Coldwell Banker Commercial Lyle & Associates
(760) 641-7602
Listed By:
Rob Wenthold · License #CalDRE #01153834
(760) 641-7602
Source:
Cbclyle
Added: Mar 6
Changed: Aug 14
Last Checked: Aug 16 at 5:10AM
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 Coldwell Banker Commercial Lyle & Associates
Investment Insights
Based on property information with market context.
Located in the heart of downtown Desert Hot Springs, this mixed-use property features approximately 5,486 square feet of retail, restaurant, and office space. The property also includes four studio apartments and one one-bedroom apartment on the second level, which could be converted into boutique resort rooms, short-term rentals, or office suites. Situated on two tax parcels totaling approximately 14,375 square feet of land, the corner location at Palm Canyon Drive and Acoma Avenue provides easy access, abundant private parking with 18+ spaces, and unobstructed visibility. The property is located just south of Pierson Boulevard and offers panoramic views from almost every vantage point. The property is located in one of the highest traffic count areas of Desert Hot Springs.
Key Highlights
- Prime downtown location at the corner of Palm Canyon Drive and Acoma Avenue in Desert Hot Springs, offering high visibility and traffic.
- Multi/Mixed‑Use property with approx. 5,486 sq. ft. of Retail/Restaurant/Office space.
- Includes 4 Studio Apartments plus 1 One Bedroom Apartment with potential for conversion to Boutique Resort rooms/Short‑Term rentals or Office Suites.
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
$50,814
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
3.40%
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%
$1,016,280
$1.0M
Cap Rate 7%
$725,914
$725.9K
Cap Rate 9%
$564,600
$564.6K
Market Conditions
NOI Build-Up for 5,486 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
$85.6K $15.60/SF
− Vacancy
−$4.3K −$0.78/SF
EGI
$81.3K $14.82/SF
− OpEx
−$30.5K −$5.56/SF
NOI
$50.8K $9.26/SF
Area
Riverside County, CA
Vacancy
5.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,016,280
Cap Rate 7%
$725,914
Cap Rate 9%
$564,600
Alternative Uses
Best Use
Mixed Use
$725.9K
$635.2K – $846.9K
NOI $50,814 @ 7.0% cap · market cap 3.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.64M
$1.44M – $1.92M
NOI $115,046 @ 7.0% cap · market cap 7.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
558
Businesses Nearby
Explore this area
Business Placement
Demographics for 92240, CA
40,920
Population
15,977
Households
2.6
Avg Household Size
34
Median Age
15%
College-Educated
78%
High-School Grad
35.7 sq mi
ZIP Area
1,146
Density / Sq Mi
$51,284
Median Household Income
$32,137
Median Earnings
$1,367
Median Rent
$294,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Multi-use property with retail, office, and residential spaces.
Where is this mixed-use property located?
The property is located at 12106 Palm Dr Desert Hot Springs, CA.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: Prime downtown location at the corner of Palm Canyon Drive and Acoma Avenue in Desert Hot Springs, offering high visibility and traffic.; Multi/Mixed‑Use property with approx. 5,486 sq. ft. of Retail/Restaurant/Office space.; Includes 4 Studio Apartments plus 1 One Bedroom Apartment with potential for conversion to Boutique Resort rooms/Short‑Term rentals or Office Suites.
