Freestanding Automotive Service
For Sale
$1,390,000
14010 Palm Dr, Desert Hot Springs, CA 92240
High-traffic location with stable tenant in Desert Hot Springs.
Property Size4,000 SF
Days on Market132
Property Features for 14010 Palm Dr
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Commercial
Building Details
Building Size
4,000 SF
Year Built
1992
Listing Agency:
Coldwell Banker Residential Brokerage Glendale
(323) 875-5844
Listed By:
Rima Sirrieh · License #01968218
(323) 875-5844
Source:
Elliman
Added: Apr 24
Changed: Aug 31
Last Checked: Sep 1 at 9:57PM
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 Residential Brokerage Glendale
Investment Insights
Based on property information with market context.
This is a rare opportunity to acquire a freestanding automotive service facility with an established tenant. The property is located along the high-traffic Palm Drive commercial corridor in Desert Hot Springs. The tenant operates under a triple net (NNN) lease structure, offering investors a stable income investment with reduced management responsibilities. Strategically situated along Palm Drive, the city’s primary retail corridor, the property benefits from strong visibility and accessibility. It is surrounded by national retailers, grocery stores, restaurants, and neighborhood service businesses near major intersections. This opportunity may appeal to investors seeking stable tenancy, automotive operators looking to expand their footprint, or buyers planning for potential future owner-user occupancy while benefiting from an income-producing property. Located along one of Desert Hot Springs’ most active commercial corridors serving surrounding residential communities and regional traffic. The property has a walk score of 73, indicating it is very walkable, a bike score of 44, indicating it is somewhat bikeable, and a transit score of 34, indicating some transit is available.
Key Highlights
- Freestanding automotive service facility with an established tenant.
- Located on high‑traffic Palm Drive commercial corridor.
- Triple net (NNN) lease structure provides stable income with reduced management.
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
$57,335
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
4.12%
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%
$1,146,700
$1.1M
Cap Rate 7%
$819,071
$819.1K
Cap Rate 9%
$637,056
$637.1K
Market Conditions
NOI Build-Up for 4,000 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
$86.4K $21.60/SF
− Vacancy
−$4.5K −$1.12/SF
EGI
$81.9K $20.48/SF
− OpEx
−$24.6K −$6.14/SF
NOI
$57.3K $14.33/SF
Area
Riverside County, CA
Vacancy
5.20%
Lease Rate
$21.60 /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%
$1,146,700
Cap Rate 7%
$819,071
Cap Rate 9%
$637,056
Alternative Uses
Best Use
Retail
$819.1K
$716.7K – $955.6K
NOI $57,335 @ 7.0% cap · market cap 4.12%
Second Best
Industrial
$469.2K
$410.6K – $547.5K
NOI $32,847 @ 7.0% cap · market cap 2.36%
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,883 @ 7.0% cap · market cap 6.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
453
Businesses Nearby
255k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 37%
Groceries 34%
Shops & Services 25%
Electronics 3%
Stater Bros. Markets
Groceries
39,924 visits/mo
0.4 miles
VONS
Groceries
38,359 visits/mo
0.1 miles
McDonald's
Dining
24,860 visits/mo
0.1 miles
Carl's Jr.
Dining
14,415 visits/mo
0.5 miles
Starbucks
Dining
13,491 visits/mo
0.2 miles
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
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - High-traffic location with stable tenant in Desert Hot Springs.
Where is this auto shop located?
The property is located at 14010 Palm Dr Desert Hot Springs, CA.
What is the asking price?
The asking price for this property is $1,390,000.
What are key features of this property?
This property features: Freestanding automotive service facility with an established tenant.; Located on high‑traffic Palm Drive commercial corridor.; Triple net (NNN) lease structure provides stable income with reduced management.
