Single-Level Mixed-Use Commercial
For Sale
$999,900
Pending
68555 E Palm Canyon Dr, Cathedral City, CA 92234
Single-level detached building on a lot with alley access, multiple entrances, and refurbished AC systems.
Property Size2,412 SF
Days on Market350
Property Features for 68555 E Palm Canyon Dr
General Information
Standard status
Pending
Size
2,412 SF
Total Parking Spaces
15
Zoning
mixed use commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Stories
1
Listing Agency:
OZA Realty Inc.
(760) 777-6622
Listed By:
Jose Espinoza · License #01754045
(760) 272-1284
Source:
Exprealty
Added: Sep 22, 2025
Changed: Sep 2
Last Checked: Sep 6 at 1:04PM
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 OZA Realty Inc.
Investment Insights
Based on property information with market context.
Single-level detached mixed-use commercial building currently owner-occupied as a law office. The property includes two main entrances, with rear handicap access, and a front door facing State Highway 111. Both AC systems were recently refurbished and are operating like new.
The site provides approximately 15 to 16 dedicated parking spaces and includes alley access. The lot has an approximately 52.67-foot frontage along E Palm Canyon Drive (State Highway 111) and is described as having mixed-use commercial zoning; the buyer should verify all permitted uses with the City, including potential restaurant use. The surrounding area is noted for retail and dining activity, with Cathedral City Hall across the street.
The offering is a 2,412-square-foot building representing approximately 40% lot coverage.
The site provides approximately 15 to 16 dedicated parking spaces and includes alley access. The lot has an approximately 52.67-foot frontage along E Palm Canyon Drive (State Highway 111) and is described as having mixed-use commercial zoning; the buyer should verify all permitted uses with the City, including potential restaurant use. The surrounding area is noted for retail and dining activity, with Cathedral City Hall across the street.
The offering is a 2,412-square-foot building representing approximately 40% lot coverage.
Key Highlights
- Single‑level mixed‑use commercial property with highway frontage on East Palm Canyon Dr (State Highway 111) in downtown Cathedral City
- Detached 2,412 SF building with approx. 40% lot coverage, alley access, and 15–16 dedicated parking spaces
- Zoned mixed use commercial; buyer to verify permitted uses with the City (potential restaurant use mentioned)
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
$37,897
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
3.79%
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%
$757,940
$757.9K
Cap Rate 7%
$541,386
$541.4K
Cap Rate 9%
$421,078
$421.1K
Market Conditions
NOI Build-Up for 2,412 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
$55.3K $22.92/SF
− Vacancy
−$4.8K −$1.97/SF
EGI
$50.5K $20.95/SF
− OpEx
−$12.6K −$5.24/SF
NOI
$37.9K $15.71/SF
Area
Riverside County, CA
Vacancy
8.60%
Lease Rate
$22.92 /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%
$757,940
Cap Rate 7%
$541,386
Cap Rate 9%
$421,078
Alternative Uses
Best Use
Office B
$541.4K
$473.7K – $631.6K
NOI $37,897 @ 7.0% cap · market cap 3.79%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$722.6K
$632.3K – $843.0K
NOI $50,582 @ 7.0% cap · market cap 5.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
975
Businesses Nearby
Explore this area
Business Placement
Demographics for 92234, CA
51,509
Population
23,114
Households
2.2
Avg Household Size
42
Median Age
26%
College-Educated
81%
High-School Grad
14.8 sq mi
ZIP Area
3,480
Density / Sq Mi
$67,031
Median Household Income
$34,895
Median Earnings
$1,554
Median Rent
$420,700
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?
Office building - Single-level detached building on a lot with alley access, multiple entrances, and refurbished AC systems.
Where is this office building located?
The property is located at 68555 E Palm Canyon Dr Cathedral City, CA.
What is the asking price?
The asking price for this property is $999,900.
What are key features of this property?
This property features: Single‑level mixed‑use commercial property with highway frontage on East Palm Canyon Dr (State Highway 111) in downtown Cathedral City; Detached 2,412 SF building with approx. 40% lot coverage, alley access, and 15–16 dedicated parking spaces; Zoned mixed use commercial; buyer to verify permitted uses with the City (potential restaurant use mentioned)
