Two-Story Cannabis Property with
For Sale
$2,950,000
353 Palm Canyon Drive, Palm Springs, CA 92262
Fee-simple commercial asset with upgraded interiors, private parking, and mountain and city views.
Property Size6,561 SF
Price / SF$449.63
Days on Market77
Property Features for 353 Palm Canyon Drive
General Information
Standard status
Active
Size
6,561 SF
Property subtype
Retail
Amenities
3
Building Details
Year Built
1992
Listing Agency:
Realty Trust
(760) 327-8000
Listed By:
Scott Timberlake · License #01257645
(760) 333-7578
Source:
Xome
Added: Jun 20
Changed: Sep 4
Last Checked: Sep 1 at 10:29PM
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 Realty Trust
Investment Insights
Based on property information with market context.
This fee-simple, two-story cannabis property includes a private off-street parking lot and elevator. The main level contains an upgraded dispensary, while the second floor is configured as a cannabis lounge. The building also features newer mechanical systems, refined interior and exterior improvements, and ADA-compliant access. The owner or tenant is expected to vacate at closing, and office or retail leasing options are available.
An expansive outdoor area provides mountain and city views, complemented by strong visibility from Palm Canyon Drive in downtown Palm Springs. The cannabis license is transferable. New licenses are not expected to be issued until after 12/31/2027, and restricted access requires advance showing arrangements through the listing agent.
An expansive outdoor area provides mountain and city views, complemented by strong visibility from Palm Canyon Drive in downtown Palm Springs. The cannabis license is transferable. New licenses are not expected to be issued until after 12/31/2027, and restricted access requires advance showing arrangements through the listing agent.
Key Highlights
- Transferable cannabis license included with the property
- Two‑story building with upgraded dispensary and second‑floor cannabis lounge
- Private off‑street parking lot, elevator, and ADA‑compliant access
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
$94,044
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
3.19%
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%
$1,880,880
$1.9M
Cap Rate 7%
$1,343,486
$1.3M
Cap Rate 9%
$1,044,933
$1.0M
Market Conditions
NOI Build-Up for 6,561 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
$141.7K $21.60/SF
− Vacancy
−$7.4K −$1.12/SF
EGI
$134.3K $20.48/SF
− OpEx
−$40.3K −$6.14/SF
NOI
$94.0K $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%
$1,880,880
Cap Rate 7%
$1,343,486
Cap Rate 9%
$1,044,933
Alternative Uses
Best Use
Retail
$1.34M
$1.18M – $1.57M
NOI $94,044 @ 7.0% cap · market cap 3.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.97M
$1.72M – $2.29M
NOI $137,590 @ 7.0% cap · market cap 4.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,842
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Cannabis property - Fee-simple commercial asset with upgraded interiors, private parking, and mountain and city views.
Where is this cannabis property located?
The property is located at 353 Palm Canyon Drive Palm Springs, CA.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Transferable cannabis license included with the property; Two‑story building with upgraded dispensary and second‑floor cannabis lounge; Private off‑street parking lot, elevator, and ADA‑compliant access
