Palm Desert Retail on
For Sale
$5,967,000
72261 Highway 111, Palm Desert, CA 92260
Retail space on major Coachella Valley thoroughfare, CA Hwy 111.
Property Size19,123 SF
Lot Size2.57 Acres
Price / SF$312.03
Days on Market301
Property Features for 72261 Highway 111
General Information
Standard status
Active
Size
19,123 SF
Lot size
2.57 Acres
Property subtype
Commercial
Amenities
Central air
Central Air Cooling
Irregular Lot
Lot Over 40000 Sqft
Building Details
Year Built
1986
Listing Agency:
SYNERGY REAL ESTATE
(562) 696-6515
Listed By:
RICHARD PARK · License #01303893
(949) 892-0822
Source:
Corcoran
Added: Nov 6, 2025
Changed: Aug 26
Last Checked: Sep 2 at 9:06PM
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 SYNERGY REAL ESTATE
Investment Insights
Based on property information with market context.
This retail space is located on a major thoroughfare, California Highway 111, throughout the Coachella Valley. It is situated within a daily needs center in the retail epicenter of the Coachella Valley, surrounded by a variety of boutiques, thrift stores, and major retailers. The property is located in the heart of Palm Desert, a hub for shopping, dining, and entertainment. Highway 111 is home to many of Palm Desert’s major retailers, including Target, Saks Off Fifth, Bed Bath and Beyond, Marshall’s, TJ Maxx, and Nordstrom Rack. Monterey Avenue, another popular thoroughfare, features shopping plazas and major retailers like Walmart, Sam’s Club, and Lowe’s. The location is considered affluent and is near country clubs, set against the backdrop of the San Jacinto Mountains. The Coachella Valley features over 150 golf courses, and home prices in the area range from $1 million to $40 million. The property size is 19123 square feet.
Key Highlights
- Prime street front retail location on CA Hwy 111, a major thoroughfare in Coachella Valley.
- Located in a daily needs center within a retail epicenter.
- Hub location for shopping, dining, and entertainment in Palm Desert.
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
$274,104
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
4.59%
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%
$5,482,080
$5.5M
Cap Rate 7%
$3,915,771
$3.9M
Cap Rate 9%
$3,045,600
$3.0M
Market Conditions
NOI Build-Up for 19,123 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
$413.1K $21.60/SF
− Vacancy
−$21.5K −$1.12/SF
EGI
$391.6K $20.48/SF
− OpEx
−$117.5K −$6.14/SF
NOI
$274.1K $14.33/SF
Area
Riverside County, CA
Vacancy
5.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$5,482,080
Cap Rate 7%
$3,915,771
Cap Rate 9%
$3,045,600
Alternative Uses
Best Use
Retail
$3.92M
$3.43M – $4.57M
NOI $274,104 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.73M
$5.01M – $6.68M
NOI $401,025 @ 7.0% cap · market cap 6.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,617
Businesses Nearby
625k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 31%
Groceries 22%
Superstores 16%
Dining 12%
Target
Superstores
101,741 visits/mo
0.3 miles
Macy's
Apparel
88,628 visits/mo
0.4 miles
Whole Foods Market
Groceries
41,499 visits/mo
0.2 miles
Walmart Neighborhood Market
Groceries
37,106 visits/mo
0.1 miles
Nordstrom Rack
Apparel
33,418 visits/mo
0.2 miles
Demographics for 92260, CA
31,641
Population
21,659
Households
1.5
Avg Household Size
57
Median Age
38%
College-Educated
92%
High-School Grad
31.3 sq mi
ZIP Area
1,011
Density / Sq Mi
$72,252
Median Household Income
$41,810
Median Earnings
$1,654
Median Rent
$463,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail space on major Coachella Valley thoroughfare, CA Hwy 111.
Where is this retail space located?
The property is located at 72261 Highway 111 Palm Desert, CA.
What is the asking price?
The asking price for this property is $5,967,000.
What are key features of this property?
This property features: Prime street front retail location on CA Hwy 111, a major thoroughfare in Coachella Valley.; Located in a daily needs center within a retail epicenter.; Hub location for shopping, dining, and entertainment in Palm Desert.
