Freestanding Office
For Sale
$2,200,000
6785 Palm Ave., Riverside, CA 92506
Corner property with secured, lighted parking and a fenced perimeter.
Property Size10,900 SF
Lot Size1.04 Acres
Days on Market157
Property Features for 6785 Palm Ave.
General Information
Standard status
Active
Size
10,900 SF
Class
B
Lot size
1.04 Acres
Property subtype
Office - General Office
Building Details
Building Size
10,900 SF
Year Built
1958
Parking Ratio
9.7 per 1,000 SF
Listing Agency:
Lee & Associates - Riverside
(951) 276-3681
Listed By:
Rocky Moran · License #01841701
Source:
Commercialcafe
Added: Mar 27
Changed: Aug 30
Last Checked: Aug 30 at 6:54PM
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 Lee & Associates - Riverside
Investment Insights
Based on property information with market context.
This freestanding office property sits on a 1.04-acre parcel at 6785 Palm Ave. in Riverside. Built in 1958, the site includes a fenced perimeter and illuminated parking areas, with the property positioned at a corner location.
The property information identifies potential applications including schools, colleges, assisted living, agricultural nursery use, churches, banquet halls, day care, mortuaries, and student housing. The sale is contingent on seller approval of the proposed use and includes a parking-area lease-back for a specified period.
The property information identifies potential applications including schools, colleges, assisted living, agricultural nursery use, churches, banquet halls, day care, mortuaries, and student housing. The sale is contingent on seller approval of the proposed use and includes a parking-area lease-back for a specified period.
Key Highlights
- 1.04‑acre freestanding commercial property
- Corner location at 6785 Palm Ave., Riverside, CA 92506
- Fenced and secured site with lighted parking
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
$202,331
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
9.20%
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%
$4,046,620
$4.0M
Cap Rate 7%
$2,890,443
$2.9M
Cap Rate 9%
$2,248,122
$2.2M
Market Conditions
NOI Build-Up for 10,900 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
$287.8K $26.40/SF
− Vacancy
−$18.0K −$1.65/SF
EGI
$269.8K $24.75/SF
− OpEx
−$67.4K −$6.19/SF
NOI
$202.3K $18.56/SF
Area
ZIP 92506
Vacancy
6.25%
Lease Rate
$26.40 /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%
$4,046,620
Cap Rate 7%
$2,890,443
Cap Rate 9%
$2,248,122
Alternative Uses
Best Use
Office B
$2.89M
$2.53M – $3.37M
NOI $202,331 @ 7.0% cap · market cap 9.20%
Second Best
Apartment 5plus
$2.42M
$2.12M – $2.82M
NOI $169,376 @ 7.0% cap · market cap 7.70%
Theoretical Best
Office A
$3.74M
$3.27M – $4.36M
NOI $261,767 @ 7.0% cap · market cap 11.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,452
Businesses Nearby
Explore this area
Business Placement
Demographics for 92506, CA
45,185
Population
15,407
Households
2.9
Avg Household Size
41
Median Age
42%
College-Educated
93%
High-School Grad
16.2 sq mi
ZIP Area
2,789
Density / Sq Mi
$120,877
Median Household Income
$51,224
Median Earnings
$1,814
Median Rent
$634,900
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?
Office building - Corner property with secured, lighted parking and a fenced perimeter.
Where is this office building located?
The property is located at 6785 Palm Ave. Riverside, CA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: 1.04‑acre freestanding commercial property; Corner location at 6785 Palm Ave., Riverside, CA 92506; Fenced and secured site with lighted parking
