Freestanding Drive-Through
For Sale
Contact for pricing
2606 E PALMDALE BLVD, Palmdale, CA 93550
Former Burger King facility with drive-through infrastructure and shared access to an adjoining shopping center.
Property Size3,426 SF
Lot Size0.36 Acres
Price / SF$437.83
Days on Market14
Property Features for 2606 E PALMDALE BLVD
General Information
Standard status
Active
Size
3,426 SF
Lot size
0.36 Acres
Property subtype
Retail
Site & Location
Drive-Thru
Yes
Traffic Count
24,800 vehicles/day
Additional Details
Asking Price
$1,500,000
Building Details
Buildings
1
Listing Agency:
CBRE - South Bay
Listed By:
Bo Henderson · License #02148577
(310) 892-5644
Source:
Crexi
Added: Aug 24
Changed: Sep 5
Last Checked: Sep 5 at 3:34PM
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 CBRE - South Bay
Investment Insights
Based on property information with market context.
This freestanding drive-through restaurant facility includes approximately 3,426 SF of building area on approximately 15,728 SF of land. Formerly operated as a Burger King, the property retains a drive-through configuration and is positioned for continued restaurant use or repositioning within the food-service sector.
The site fronts E Palmdale Blvd in Palmdale and records approximately 24,800 cars per day. It is adjacent to Dutch Bros Coffee and near national retail operators, providing established commercial surroundings. Reciprocal parking and access with the neighboring shopping center support customer circulation and day-to-day operations.
The site fronts E Palmdale Blvd in Palmdale and records approximately 24,800 cars per day. It is adjacent to Dutch Bros Coffee and near national retail operators, providing established commercial surroundings. Reciprocal parking and access with the neighboring shopping center support customer circulation and day-to-day operations.
Key Highlights
- ±3,426 SF building on ±15,728 SF of land
- Existing drive‑through restaurant configuration
- Approximately 24,800 cars per day on E Palmdale Blvd
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
$67,372
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
4.49%
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%
$1,347,440
$1.3M
Cap Rate 7%
$962,457
$962.5K
Cap Rate 9%
$748,578
$748.6K
Market Conditions
NOI Build-Up for 3,426 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
$94.6K $27.60/SF
− Vacancy
−$4.7K −$1.38/SF
EGI
$89.8K $26.22/SF
− OpEx
−$22.5K −$6.56/SF
NOI
$67.4K $19.67/SF
Area
Palmdale, CA
Vacancy
5.00%
Lease Rate
$27.60 /SF/Yr
Expense Ratio
25.00%
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%
$1,347,440
Cap Rate 7%
$962,457
Cap Rate 9%
$748,578
Alternative Uses
Best Use
Specialty Retail
$962.5K
$842.2K – $1.12M
NOI $67,372 @ 7.0% cap · market cap 4.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.45M
$1.27M – $1.69M
NOI $101,261 @ 7.0% cap · market cap 6.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24,800 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
792
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Former Burger King facility with drive-through infrastructure and shared access to an adjoining shopping center.
Where is this drive through restaurant located?
The property is located at 2606 E PALMDALE BLVD Palmdale, CA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: ±3,426 SF building on ±15,728 SF of land; Existing drive‑through restaurant configuration; Approximately 24,800 cars per day on E Palmdale Blvd
