Single-Tenant Industrial
New
For Sale
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1278 Montalvo Way, Palm Springs, CA 92262
Gated parking, a large yard, and new parking and HVAC improvements support the occupied industrial facility.
Property Size12,143 SF
Price / SF$246.23
Days on Market7
Property Features for 1278 Montalvo Way
General Information
Standard status
Active
Size
12,143 SF
Property subtype
INDUSTRIAL
Occupancy
100%
Building Details
Tenancy
Single
Listing Agency:
Lee & Associates
(760) 578-5566
Listed By:
Polo Doria, SIOR
(760) 578-5566
Source:
Moodyscre
Added: Aug 6
Changed: Aug 9
Last Checked: Aug 11 at 2:24PM
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 Lee & Associates
Investment Insights
Based on property information with market context.
This industrial property comprises 12,143 square feet and is fully leased to one long-term tenant. Property features include new parking and HVAC improvements, gated secured parking, and a large yard that provides additional outdoor space.
The facility is located at 1278 Montalvo Way in Palm Springs, California. Its existing occupancy, updated building systems, secured parking, and yard area provide a clear operating profile for industrial property ownership.
The facility is located at 1278 Montalvo Way in Palm Springs, California. Its existing occupancy, updated building systems, secured parking, and yard area provide a clear operating profile for industrial property ownership.
Key Highlights
- 12,143‑square‑foot industrial property
- 100% leased to a single long‑time tenant
- New parking and HVAC improvements
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
$99,716
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
3.33%
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%
$1,994,320
$2.0M
Cap Rate 7%
$1,424,514
$1.4M
Cap Rate 9%
$1,107,956
$1.1M
Market Conditions
NOI Build-Up for 12,143 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
$151.5K $12.48/SF
− Vacancy
−$9.1K −$0.75/SF
EGI
$142.5K $11.73/SF
− OpEx
−$42.7K −$3.52/SF
NOI
$99.7K $8.21/SF
Area
Riverside County, CA
Vacancy
6.00%
Lease Rate
$12.48 /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%
$1,994,320
Cap Rate 7%
$1,424,514
Cap Rate 9%
$1,107,956
Alternative Uses
Best Use
Industrial
$1.42M
$1.25M – $1.66M
NOI $99,716 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.64M
$3.18M – $4.24M
NOI $254,649 @ 7.0% cap · market cap 8.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
301
Businesses Nearby
Explore this area
Business Placement
Demographics for 92262, CA
26,593
Population
19,940
Households
1.3
Avg Household Size
54
Median Age
42%
College-Educated
93%
High-School Grad
35.1 sq mi
ZIP Area
758
Density / Sq Mi
$70,514
Median Household Income
$42,940
Median Earnings
$1,420
Median Rent
$600,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Gated parking, a large yard, and new parking and HVAC improvements support the occupied industrial facility.
Where is this industrial property located?
The property is located at 1278 Montalvo Way Palm Springs, CA.
What is the asking price?
The asking price for this property is $2,990,000.
What are key features of this property?
This property features: 12,143‑square‑foot industrial property; 100% leased to a single long‑time tenant; New parking and HVAC improvements
