Palmdale DaVita For
For Sale
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38454 5th St W, Palmdale, CA 93551
DaVita with long-term lease in Palmdale, California.
Property Size13,750 SF
Lot Size1.46 Acres
Price / SF$468.56
Days on Market315
Property Features for 38454 5th St W
General Information
Standard status
Active
Size
13,750 SF
Class
B
Total Parking Spaces
68
Lot size
1.46 Acres
Property subtype
Office, Retail
Zoning
PDC3
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$402,672
Building Details
Year Built
2016
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
CBRE LA
Listed By:
Patrick Conway · License #CA 01894502
Source:
Crexi
Added: Oct 15, 2025
Changed: Aug 14
Last Checked: Aug 23 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 CBRE LA
Investment Insights
Based on property information with market context.
The property at 38454 5th St. W in Palmdale, CA, is available for sale. It features a 13,750 square foot building on a 1.46-acre lot. The property is a DaVita location with a lease extending to over 10 years. Situated on 5th St W, the location is just off the 14 Freeway, benefiting from high traffic volume. The surrounding area has a population of 130,000 people and an average household income of $80,000 within a 5-mile radius. The property is located less than a mile from Palmdale Medical Center, which has 184 staffed beds and sees over 60,000 emergency department visits annually. DaVita Inc. provides dialysis and administrative services through a network of 3,175 outpatient dialysis centers globally, serving approximately 282,000 patients as of June 30, 2025. DaVita, Inc. also provides acute inpatient dialysis services in over 900 hospitals and related laboratory services throughout the United States.
Key Highlights
- Long‑term lease with DaVita, extending over 10 years.
- Strong credit tenant: DaVita Inc. (DVA), a publicly traded company with an $8.86 Billion market cap.
- High‑traffic location:** Situated on 5th St W, near the 14 Freeway, with a combined 140,000 vehicles per day.
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
$297,297
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
4.61%
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%
$5,945,940
$5.9M
Cap Rate 7%
$4,247,100
$4.2M
Cap Rate 9%
$3,303,300
$3.3M
Market Conditions
NOI Build-Up for 13,750 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
$471.9K $34.32/SF
− Vacancy
−$75.5K −$5.49/SF
EGI
$396.4K $28.83/SF
− OpEx
−$99.1K −$7.21/SF
NOI
$297.3K $21.62/SF
Area
Palmdale, CA
Vacancy
16.00%
Lease Rate
$34.32 /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%
$5,945,940
Cap Rate 7%
$4,247,100
Cap Rate 9%
$3,303,300
Alternative Uses
Best Use
Office B
$4.25M
$3.72M – $4.95M
NOI $297,297 @ 7.0% cap · market cap 4.61%
Second Best
Healthcare Medical
$3.66M
$3.21M – $4.27M
NOI $256,410 @ 7.0% cap · market cap 3.98%
Theoretical Best
Office A
$5.81M
$5.08M – $6.77M
NOI $406,402 @ 7.0% cap · market cap 6.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
918
Businesses Nearby
Explore this area
Business Placement
Demographics for 93551, CA
56,001
Population
17,940
Households
3.1
Avg Household Size
38
Median Age
30%
College-Educated
87%
High-School Grad
84.8 sq mi
ZIP Area
660
Density / Sq Mi
$110,850
Median Household Income
$55,882
Median Earnings
$2,263
Median Rent
$548,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - DaVita with long-term lease in Palmdale, California.
Where is this medical center located?
The property is located at 38454 5th St W Palmdale, CA.
What is the asking price?
The asking price for this property is $6,442,755.
What are key features of this property?
This property features: Long‑term lease with DaVita, extending over 10 years.; Strong credit tenant: DaVita Inc. (DVA), a publicly traded company with an $8.86 Billion market cap.; High‑traffic location:** Situated on 5th St W, near the 14 Freeway, with a combined 140,000 vehicles per day.
