El Paseo Retail
For Sale
$1,900,000
73940 El Paseo, Palm Desert, CA 92260
Free-standing building in El Paseo's shopping and dining district.
Property Size4,971 SF
Days on Market163
Property Features for 73940 El Paseo
General Information
Standard status
Active
Size
4,971 SF
Class
B
Property subtype
Storefront Retail/Office
Building Details
Building Size
4,971 SF
Year Built
1973
Listing Agency:
Coldwell Banker Commercial Lyle & Associates
(760) 641-7602
Listed By:
Rob Wenthold · License #CalDRE #01153834
(760) 641-7602
Source:
Cbclyle
Added: Mar 6
Changed: Aug 10
Last Checked: Aug 15 at 5:17AM
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 Coldwell Banker Commercial Lyle & Associates
Investment Insights
Based on property information with market context.
Located in the heart of El Paseo's shopping, dining, and entertainment district, this meticulously maintained free-standing building offers unparalleled exposure with unobstructed street frontage. The property features desirable floor-to-ceiling display windows. It is easily accessible with ample on-street front parking and abundant private direct-access rear parking. The completely open interior floor plan allows for immediate occupancy for a variety of retailers, restaurants, or office users. The building is strategically located within a short walk to world-renowned retailers, trendy restaurants, and resorts and boutique hotels.
Key Highlights
- Prime location in the heart of El Paseo's shopping, dining, and entertainment district.
- Unparalleled exposure with unobstructed street frontage and floor‑to‑ceiling display windows.
- Ample on‑street front parking and abundant private direct‑access rear 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
$71,253
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
3.75%
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%
$1,425,060
$1.4M
Cap Rate 7%
$1,017,900
$1.0M
Cap Rate 9%
$791,700
$791.7K
Market Conditions
NOI Build-Up for 4,971 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
$107.4K $21.60/SF
− Vacancy
−$5.6K −$1.12/SF
EGI
$101.8K $20.48/SF
− OpEx
−$30.5K −$6.14/SF
NOI
$71.3K $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%
$1,425,060
Cap Rate 7%
$1,017,900
Cap Rate 9%
$791,700
Alternative Uses
Best Use
Retail
$1.02M
$890.7K – $1.19M
NOI $71,253 @ 7.0% cap · market cap 3.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.49M
$1.30M – $1.74M
NOI $104,246 @ 7.0% cap · market cap 5.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,593
Businesses Nearby
202k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 34%
Dining 32%
Apparel 20%
Electronics 8%
Tower Mart
Shops & Services
19,304 visits/mo
0.1 miles
Apple Store
Electronics
15,801 visits/mo
0.4 miles
lululemon athletica
Apparel
15,257 visits/mo
0.4 miles
Starbucks
Dining
13,436 visits/mo
0.4 miles
Blaze Pizza
Dining
11,051 visits/mo
0.5 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?
Storefront property - Free-standing building in El Paseo's shopping and dining district.
Where is this storefront property located?
The property is located at 73940 El Paseo Palm Desert, CA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Prime location in the heart of El Paseo's shopping, dining, and entertainment district.; Unparalleled exposure with unobstructed street frontage and floor‑to‑ceiling display windows.; Ample on‑street front parking and abundant private direct‑access rear parking.
