Tierra Subida Shopping
For Sale
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38709 Tierra Subida Ave, Palmdale, CA 93551
CPD-zoned retail property across from Palmdale Regional Medical Center.
Property Size21,286 SF
Price / SF$358.92
Days on Market146
Property Features for 38709 Tierra Subida Ave
General Information
Standard status
Active
Size
21,286 SF
Property subtype
Retail
Zoning
CPD
Occupancy
100%
Investment Type
Net Lease
Building Details
Year Built
1994
Listing Agency:
Cushman & Wakefield - Bakersfield, California
Listed By:
Vincent Roche · License #CA 01155079
Source:
Crexi
Added: Apr 8
Changed: Aug 29
Last Checked: Aug 30 at 10:23PM
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 Cushman & Wakefield - Bakersfield, California
Investment Insights
Based on property information with market context.
Tierra Subida Shopping Center is a 21,286-square-foot retail property completed in 1994 and designated CPD. Its position across from Palmdale Regional Medical Center places the center within an established commercial setting.
The surrounding Palmdale retail and business district includes Antelope Valley Mall, approximately 2 million square feet of additional retail, an Auto Mall, hotels, and restaurants. A proposed Palmdale conference center is also identified within the surrounding area, adding to the range of commercial uses represented nearby.
The surrounding Palmdale retail and business district includes Antelope Valley Mall, approximately 2 million square feet of additional retail, an Auto Mall, hotels, and restaurants. A proposed Palmdale conference center is also identified within the surrounding area, adding to the range of commercial uses represented nearby.
Key Highlights
- 21,286‑square‑foot retail property
- Built in 1994
- CPD zoning
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
$363,282
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
4.76%
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%
$7,265,640
$7.3M
Cap Rate 7%
$5,189,743
$5.2M
Cap Rate 9%
$4,036,467
$4.0M
Market Conditions
NOI Build-Up for 21,286 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
$549.2K $25.80/SF
− Vacancy
−$30.2K −$1.42/SF
EGI
$519.0K $24.38/SF
− OpEx
−$155.7K −$7.31/SF
NOI
$363.3K $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%
$7,265,640
Cap Rate 7%
$5,189,743
Cap Rate 9%
$4,036,467
Alternative Uses
Best Use
Retail
$5.19M
$4.54M – $6.05M
NOI $363,282 @ 7.0% cap · market cap 4.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.99M
$7.86M – $10.49M
NOI $629,139 @ 7.0% cap · market cap 8.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,041
Businesses Nearby
Balanced
Demand for This Use
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - CPD-zoned retail property across from Palmdale Regional Medical Center.
Where is this shopping center located?
The property is located at 38709 Tierra Subida Ave Palmdale, CA.
What is the asking price?
The asking price for this property is $7,640,000.
What are key features of this property?
This property features: 21,286‑square‑foot retail property; Built in 1994; CPD zoning
