Versatile Commercial Property with
For Sale
Contact for pricing
561 N Palm Ave, Hemet, CA 92543
Two buildings on a large lot with income potential.
Property Size4,387 SF
Lot Size0.59 Acres
Price / SF$141.30
Days on Market196
Property Features for 561 N Palm Ave
General Information
Standard status
Active
Size
4,387 SF
Lot size
0.59 Acres
Property subtype
Industrial, Mixed Use
Zoning
C2
Occupancy
100%
Investment Type
Owner/User
Net Operating Income
$56,808
Building Details
Year Built
1980
Buildings
2
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
Guaranteed Realty
(951) 445-0691
Listed By:
David Limon · License #00908480
Source:
Crexi
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 8 at 6:41AM
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 Guaranteed Realty
Investment Insights
Based on property information with market context.
This commercial property presents an opportunity for either an owner-user or an investor. The property includes two separate buildings, each approximately 2,100 square feet, with individual entrances and fenced yard space. Situated on a 25,700-square-foot lot, the property features large bay doors and ample on-site parking. The layouts are suited for light industrial, warehouse, contractor, or service-based uses; however, the buyer should verify zoning and permitted uses. Both buildings are currently rented on a month-to-month basis, providing income. The property offers an 8.69% cap rate and can be delivered vacant at close. The total property size is 4,387 square feet.
Key Highlights
- Attractive 8.69% cap rate provides immediate income.
- Property can be delivered vacant at close, ideal for owner‑user.
- Two separate 2,100 sq ft buildings offer flexible use and income potential.
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
$43,745
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
7.06%
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%
$874,900
$874.9K
Cap Rate 7%
$624,929
$624.9K
Cap Rate 9%
$486,056
$486.1K
Market Conditions
NOI Build-Up for 4,387 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
$54.7K $12.48/SF
− Vacancy
−$3.3K −$0.75/SF
EGI
$51.5K $11.73/SF
− OpEx
−$7.7K −$1.76/SF
NOI
$43.7K $9.97/SF
Area
Riverside County, CA
Vacancy
6.00%
Lease Rate
$12.48 /SF/Yr
Expense Ratio
15.00%
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%
$874,900
Cap Rate 7%
$624,929
Cap Rate 9%
$486,056
Alternative Uses
Best Use
Warehouse
$624.9K
$546.8K – $729.1K
NOI $43,745 @ 7.0% cap · market cap 7.06%
Second Best
Mixed Use
$580.5K
$507.9K – $677.3K
NOI $40,635 @ 7.0% cap · market cap 6.56%
Theoretical Best
Office A
$1.31M
$1.15M – $1.53M
NOI $91,999 @ 7.0% cap · market cap 14.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,027
Businesses Nearby
Explore this area
Business Placement
Demographics for 92543, CA
39,323
Population
15,225
Households
2.6
Avg Household Size
37
Median Age
13%
College-Educated
75%
High-School Grad
19.1 sq mi
ZIP Area
2,059
Density / Sq Mi
$47,002
Median Household Income
$34,376
Median Earnings
$1,306
Median Rent
$250,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two buildings on a large lot with income potential.
Where is this mixed-use property located?
The property is located at 561 N Palm Ave Hemet, CA.
What is the asking price?
The asking price for this property is $619,900.
What are key features of this property?
This property features: Attractive 8.69% cap rate provides immediate income.; Property can be delivered vacant at close, ideal for owner‑user.; Two separate 2,100 sq ft buildings offer flexible use and income potential.
