Medical Office Investment
For Sale
$3,950,000
Pending
450 W Palmdale, Palmdale, CA 93551
Two buildings near Palmdale Regional Medical Center for sale.
Property Size13,200 SF
Days on Market265
Property Features for 450 W Palmdale
General Information
Standard status
Pending
Size
13,200 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
2009
Listing Agency:
Markowitz Commercial Real Estate, Inc.
(818) 337-9066
Listed By:
Joshua Markowitz · License #01978248
(818) 337-9066
Source:
Exitrealty
Added: Dec 3, 2025
Changed: Aug 23
Last Checked: Jul 23 at 9:30AM
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 Markowitz Commercial Real Estate, Inc.
Investment Insights
Based on property information with market context.
Buildings 450 and 460 at Challenger Business Park are available for purchase, subject to a ground lease through 2061. Building 460 offers 13,200 square feet and is suitable for an owner-user. Building 450 generates approximately $280,000 in base rent and CAMs. The property's 59% vacancy rate makes it eligible for SBA financing. Located in close proximity to Palmdale Regional Medical Center, this property is well-suited for a medical clinic. The location has a walk score of 39, indicating car-dependence, and a bike score of 35, suggesting it is somewhat bikeable.
Key Highlights
- Priced at $156 per square foot.
- Building 460 (13,200 sq ft) is available for owner‑user.
- Building 450 generates approximately $280,000 in base rent and CAMs.
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
$285,405
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
7.23%
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%
$5,708,100
$5.7M
Cap Rate 7%
$4,077,214
$4.1M
Cap Rate 9%
$3,171,167
$3.2M
Market Conditions
NOI Build-Up for 13,200 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
$453.0K $34.32/SF
− Vacancy
−$72.5K −$5.49/SF
EGI
$380.5K $28.83/SF
− OpEx
−$95.1K −$7.21/SF
NOI
$285.4K $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%
$5,708,100
Cap Rate 7%
$4,077,214
Cap Rate 9%
$3,171,167
Alternative Uses
Best Use
Office B
$4.08M
$3.57M – $4.76M
NOI $285,405 @ 7.0% cap · market cap 7.23%
Second Best
Healthcare Medical
$3.52M
$3.08M – $4.10M
NOI $246,154 @ 7.0% cap · market cap 6.23%
Theoretical Best
Office A
$5.57M
$4.88M – $6.50M
NOI $390,146 @ 7.0% cap · market cap 9.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,194
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two buildings near Palmdale Regional Medical Center for sale.
Where is this medical office space located?
The property is located at 450 W Palmdale Palmdale, CA.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: Priced at $156 per square foot.; Building 460 (13,200 sq ft) is available for owner‑user.; Building 450 generates approximately $280,000 in base rent and CAMs.
