Office/Warehouse Condo in
For Sale
$435,000
650 Commerce Avenue Unit D, Palmdale, CA 93551
2,430 SF office/warehouse condo in excellent condition, built in 2007.
Property Size2,427 SF
Lot Size5.29 Acres
Price / SF$179.23
Days on Market207
Property Features for 650 Commerce Avenue Unit D
General Information
Standard status
Active
Size
2,427 SF
Lot size
5.29 Acres
Property subtype
Industrial
Building Details
Building Size
2,427 SF
Year Built
2007
Listing Agency:
SVN | Rich Investment Real Estate Partners Los Angeles
(310) 892-6892
Listed By:
Shiva Monify · License #CalDRE #01728143
(310) 892-6892
Source:
Svn
Added: Jan 27
Changed: Aug 15
Last Checked: Aug 21 at 4:20AM
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 SVN | Rich Investment Real Estate Partners Los Angeles
Investment Insights
Based on property information with market context.
This 2,430 square foot office/industrial condo unit, constructed in 2007, features office and warehouse space situated on a 5.29-acre parcel. Zoned Industrial/PDMX with a Light Manufacturing Use Code, the unit is in excellent condition. The layout includes a reception area, multiple offices, a kitchen, two bathrooms, and a warehouse on the first floor, with additional offices offering mountain views on the second floor. It also has back access with a private entrance and a grade-level roll-up door. New AC and a security system are installed. The property is located in Palmdale, the largest city of the Antelope Valley and fourth largest in the Mojave Desert, known for its family-oriented community and high quality of life. The Palmdale Trade and Commerce Center hosts various manufacturing, industrial, and corporate offices. Zoning permits medical and general office use. There is ample on-site parking and easy access to Palmdale Boulevard and Highway 14.
Key Highlights
- Excellent condition office/warehouse condo built in 2007 with 2,430 SF of space.
- Zoned Industrial/PDMX with “Light Manufacturing” Use Code, also permits for Medical and General Office Use.
- Easy access to Palmdale Blvd. and HWY 14.
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
$34,389
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
7.91%
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%
$687,780
$687.8K
Cap Rate 7%
$491,271
$491.3K
Cap Rate 9%
$382,100
$382.1K
Market Conditions
NOI Build-Up for 2,427 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
$42.8K $17.64/SF
− Vacancy
−$2.4K −$0.97/SF
EGI
$40.5K $16.67/SF
− OpEx
−$6.1K −$2.50/SF
NOI
$34.4K $14.17/SF
Area
Palmdale, CA
Vacancy
5.50%
Lease Rate
$17.64 /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%
$687,780
Cap Rate 7%
$491,271
Cap Rate 9%
$382,100
Alternative Uses
Best Use
Office B
$749.7K
$656.0K – $874.6K
NOI $52,476 @ 7.0% cap · market cap 12.06%
Second Best
Warehouse
$491.3K
$429.9K – $573.2K
NOI $34,389 @ 7.0% cap · market cap 7.91%
Theoretical Best
Office A
$1.02M
$896.7K – $1.20M
NOI $71,734 @ 7.0% cap · market cap 16.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,059
Businesses Nearby
Under-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 Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - 2,430 SF office/warehouse condo in excellent condition, built in 2007.
Where is this flex space located?
The property is located at 650 Commerce Avenue Unit D Palmdale, CA.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: Excellent condition office/warehouse condo built in 2007 with 2,430 SF of space.; Zoned Industrial/PDMX with “Light Manufacturing” Use Code, also permits for Medical and General Office Use.; Easy access to Palmdale Blvd. and HWY 14.
