Single-Tenant Auto Collision
For Sale
$5,195,000
40360 La Quinta Lane, Palmdale, CA 93551
Single-tenant industrial collision repair building with specialized paint and refinishing improvements and a secured yard.
Property Size18,970 SF
Lot Size2.35 Acres
Price / SF$273.85
Days on Market104
Property Features for 40360 La Quinta Lane
General Information
Standard status
Active
Size
18,970 SF
Lot size
2.35 Acres
Property subtype
Commercial/Industrial
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Utilities to Site
Yes
Building Details
Year Built
2007
Tenancy
Single
Listing Agency:
RE/MAX All-Pro
(661) 726-4804
Listed By:
Kenneth K Terracciano · License #01254688
(661) 726-4804
Source:
Exitrealty
Added: May 13
Changed: Aug 24
Last Checked: Aug 23 at 7:40AM
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 RE/MAX All-Pro
Investment Insights
Based on property information with market context.
This single-tenant net leased industrial automotive facility is occupied by Caliber Collision and is configured for collision repair operations. The property includes an approximately 18,970-square-foot specialized collision repair facility with repair bays, office and customer reception space, secured storage, and automotive service components, along with paint and refinishing infrastructure designed for long-term use.
The site includes approximately 2.35 acres and offers secured yard space intended to support automotive and fleet activity. The offering also mentions strong frontage, visibility, and accessibility, with the property positioned near Highway 14 and major Antelope Valley transportation routes.
A modified NNN lease is described with 2% annual rent increases and a corporate guaranty. The lease extends through February 2028 with one additional five-year extension option, and the tenant reimburses property taxes while the ownership retains limited structural responsibilities. The remarks also note a potential expansion area that may support additional development, subject to buyer verification, approvals, and permitting.
The site includes approximately 2.35 acres and offers secured yard space intended to support automotive and fleet activity. The offering also mentions strong frontage, visibility, and accessibility, with the property positioned near Highway 14 and major Antelope Valley transportation routes.
A modified NNN lease is described with 2% annual rent increases and a corporate guaranty. The lease extends through February 2028 with one additional five-year extension option, and the tenant reimburses property taxes while the ownership retains limited structural responsibilities. The remarks also note a potential expansion area that may support additional development, subject to buyer verification, approvals, and permitting.
Key Highlights
- Single‑tenant net leased industrial collision repair facility occupied by Caliber Collision at 40360 La Quinta Ln, Palmdale
- Approximately 18,970 SF collision repair building on approximately 2.35 acres with secured yard space for automotive and fleet operations
- Specialized improvements include paint and refinishing infrastructure, repair bays, office/customer reception, and secured storage
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
$323,755
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
6.23%
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%
$6,475,100
$6.5M
Cap Rate 7%
$4,625,071
$4.6M
Cap Rate 9%
$3,597,278
$3.6M
Market Conditions
NOI Build-Up for 18,970 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
$489.4K $25.80/SF
− Vacancy
−$26.9K −$1.42/SF
EGI
$462.5K $24.38/SF
− OpEx
−$138.8K −$7.31/SF
NOI
$323.8K $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%
$6,475,100
Cap Rate 7%
$4,625,071
Cap Rate 9%
$3,597,278
Alternative Uses
Best Use
Retail
$4.63M
$4.05M – $5.40M
NOI $323,755 @ 7.0% cap · market cap 6.23%
Second Best
Industrial
$3.16M
$2.77M – $3.69M
NOI $221,358 @ 7.0% cap · market cap 4.26%
Theoretical Best
Office A
$8.01M
$7.01M – $9.34M
NOI $560,686 @ 7.0% cap · market cap 10.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Fenced yard
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
288
Businesses Nearby
Well-served
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
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?
Auto shop - Single-tenant industrial collision repair building with specialized paint and refinishing improvements and a secured yard.
Where is this auto shop located?
The property is located at 40360 La Quinta Lane Palmdale, CA.
What is the asking price?
The asking price for this property is $5,195,000.
What are key features of this property?
This property features: Single‑tenant net leased industrial collision repair facility occupied by Caliber Collision at 40360 La Quinta Ln, Palmdale; Approximately 18,970 SF collision repair building on approximately 2.35 acres with secured yard space for automotive and fleet operations; Specialized improvements include paint and refinishing infrastructure, repair bays, office/customer reception, and secured storage
