Commercial Shopping Center with Large
For Sale
$1,150,000
16937 Walnut St, Hesperia, CA 92345
Shopping center with ample parking and flexible space, suitable for retail, restaurant, service, or professional uses.
Property Size7,863 SF
Price / SF$146.25
Days on Market76
Property Features for 16937 Walnut St
General Information
Standard status
Active
Size
7,863 SF
Property subtype
Industrial
Building Details
Building Size
7,863 SF
Year Built
1988
Units
5
Listing Agency:
Re/Max Freedom
(760) 887-1122
Listed By:
Kimberly Jarrard · License #01840446
Source:
Elliman
Added: Jun 16
Changed: Aug 23
Last Checked: Aug 29 at 11:30AM
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 Re/Max Freedom
Investment Insights
Based on property information with market context.
This for-sale commercial shopping center totals approximately 7,863± square feet and is positioned within an established retail corridor. The property includes a large parking lot with ample parking to support day-to-day customer and visitor access. Its configuration lends itself to a variety of small business and community-oriented concepts.
Located at 16937 Walnut St in Hesperia, the center benefits from good visibility and access along Walnut Street. The area surrounding the property includes major roadways, residential neighborhoods, and local businesses, which can help create consistent foot traffic throughout the day.
Given the center’s adaptable retail setting, it may be well-suited for potential restaurant use, service businesses, church or other religious facilities, or professional users. Buyers or tenants looking for a shopping center format with parking already in place may find the layout and location practical for operational needs. Any specific future use should be evaluated based on applicable requirements and approvals.
Located at 16937 Walnut St in Hesperia, the center benefits from good visibility and access along Walnut Street. The area surrounding the property includes major roadways, residential neighborhoods, and local businesses, which can help create consistent foot traffic throughout the day.
Given the center’s adaptable retail setting, it may be well-suited for potential restaurant use, service businesses, church or other religious facilities, or professional users. Buyers or tenants looking for a shopping center format with parking already in place may find the layout and location practical for operational needs. Any specific future use should be evaluated based on applicable requirements and approvals.
Key Highlights
- 7,863± SF commercial shopping center in Hesperia
- Built in 1988
- Located on Walnut Street in an established commercial corridor
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
$74,662
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
6.49%
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%
$1,493,240
$1.5M
Cap Rate 7%
$1,066,600
$1.1M
Cap Rate 9%
$829,578
$829.6K
Market Conditions
NOI Build-Up for 7,863 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
$113.2K $14.40/SF
− Vacancy
−$6.6K −$0.84/SF
EGI
$106.7K $13.56/SF
− OpEx
−$32.0K −$4.07/SF
NOI
$74.7K $9.50/SF
Area
Hesperia, CA
Vacancy
5.80%
Lease Rate
$14.40 /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%
$1,493,240
Cap Rate 7%
$1,066,600
Cap Rate 9%
$829,578
Alternative Uses
Best Use
Retail
$1.07M
$933.3K – $1.24M
NOI $74,662 @ 7.0% cap · market cap 6.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.23M
$1.95M – $2.60M
NOI $156,103 @ 7.0% cap · market cap 13.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
908
Businesses Nearby
231k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 38%
Shops & Services 36%
Groceries 21%
Home Improvements & Furnishings 3%
Stater Bros. Markets
Groceries
48,648 visits/mo
0.2 miles
Starbucks
Dining
23,867 visits/mo
0.3 miles
Fastrip
Shops & Services
19,844 visits/mo
0.5 miles
ARCO
Shops & Services
12,454 visits/mo
0.1 miles
Sizzler
Dining
10,570 visits/mo
0.2 miles
Demographics for 92345, CA
86,499
Population
27,247
Households
3.2
Avg Household Size
34
Median Age
11%
College-Educated
77%
High-School Grad
98.9 sq mi
ZIP Area
875
Density / Sq Mi
$65,949
Median Household Income
$37,235
Median Earnings
$1,499
Median Rent
$359,700
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?
Shopping center - Shopping center with ample parking and flexible space, suitable for retail, restaurant, service, or professional uses.
Where is this shopping center located?
The property is located at 16937 Walnut St Hesperia, CA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 7,863± SF commercial shopping center in Hesperia; Built in 1988; Located on Walnut Street in an established commercial corridor
