Palmdale Shopping Center For
For Sale
Contact for pricing
2200 E Palmdale Blvd, Palmdale, CA 93550
93% occupied shopping center with internet-resistant tenants.
Property Size92,073 SF
Lot Size13.85 Acres
Price / SF$203.10
Days on Market159
Property Features for 2200 E Palmdale Blvd
General Information
Standard status
Active
Size
92,073 SF
Total Parking Spaces
600
Lot size
13.85 Acres
Property subtype
Retail
Zoning
EDFX: Educational Flex
Occupancy
93%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$1,412,173
Building Details
Year Built
1987
Year Renovated
2007
Buildings
7
Units
27
Tenancy
Multi
Listing Agency:
Marcus & Millichap
(951) 532-1222
Listed By:
Alan Krueger · License #00880814
Source:
Crexi
Added: Mar 11
Changed: Aug 10
Last Checked: Aug 14 at 6:23AM
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 Marcus & Millichap
Investment Insights
Based on property information with market context.
Towne Square East Plaza is a 92,073-square-foot neighborhood shopping center located in Palmdale, California. The property is 93% occupied and situated on 13.85 acres. Anchored by tenants including Crunch Fitness, the United States Postal Service, and Los Angeles County Department of Mental Health, the center also features multiple pad sites with service and restaurant users. The property has benefited from approximately $5,000,000 in tenant improvements and nearly $500,000 in capital improvements over the past decade. The property is strategically positioned along East Palmdale Boulevard, with a daily traffic count of 34,000 vehicles, and offers convenient access to Aerospace Highway. It benefits from visibility and connectivity within a retail corridor surrounded by major national tenants such as Target, The Home Depot, and Ross. The property is located within a designated California Opportunity Zone. Strong demographics within a five-mile radius include nearly 144,000 residents with an average household income above $90,000.
Key Highlights
- 93% Occupied Neighborhood Shopping Center with Strong Anchor Tenants including Crunch Fitness, USPS, and Los Angeles County Department of Mental Health.
- Significant Capital Improvements: Approximately $500,000 in capital improvements and $5,000,000 in tenant improvements over the past decade.
- Strategic Location on East Palmdale Boulevard with 34,000 vehicles passing daily and convenient access to Aerospace Highway.
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
$1,571,382
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
8.40%
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%
$31,427,640
$31.4M
Cap Rate 7%
$22,448,314
$22.4M
Cap Rate 9%
$17,459,800
$17.5M
Market Conditions
NOI Build-Up for 92,073 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
$2.38M $25.80/SF
− Vacancy
−$130.7K −$1.42/SF
EGI
$2.24M $24.38/SF
− OpEx
−$673.4K −$7.31/SF
NOI
$1.57M $17.07/SF
Area
Palmdale, CA
Vacancy
5.50%
Lease Rate
$25.80 /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%
$31,427,640
Cap Rate 7%
$22,448,314
Cap Rate 9%
$17,459,800
Alternative Uses
Best Use
Retail
$22.45M
$19.64M – $26.19M
NOI $1,571,382 @ 7.0% cap · market cap 8.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$38.88M
$34.02M – $45.36M
NOI $2,721,354 @ 7.0% cap · market cap 14.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
988
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 93550, CA
82,379
Population
23,965
Households
3.4
Avg Household Size
31
Median Age
10%
College-Educated
71%
High-School Grad
259.3 sq mi
ZIP Area
318
Density / Sq Mi
$63,811
Median Household Income
$34,287
Median Earnings
$1,573
Median Rent
$378,700
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Shopping center - 93% occupied shopping center with internet-resistant tenants.
Where is this shopping center located?
The property is located at 2200 E Palmdale Blvd Palmdale, CA.
What is the asking price?
The asking price for this property is $18,700,000.
What are key features of this property?
This property features: 93% Occupied Neighborhood Shopping Center with Strong Anchor Tenants including Crunch Fitness, USPS, and Los Angeles County Department of Mental Health.; Significant Capital Improvements: Approximately $500,000 in capital improvements and $5,000,000 in tenant improvements over the past decade.; Strategic Location on East Palmdale Boulevard with 34,000 vehicles passing daily and convenient access to Aerospace Highway.
