Multi-Tenant Office
For Sale
$2,950,000
73993 Hwy 111, Palm Desert, CA 92260
COMMERCIAL - Palm Desert, CA
Property Size9,506 SF
Lot Size0.27 Acres
Price / SF$310.33
Days on Market96
Property Features for 73993 Hwy 111
General Information
Property type
Commercial Sale
Property subtype
Office
Parking features
Parking Lot
Lot features
Landscaped, Landscaped
Subdivision
323 - Palm Desert South
Standard status
Active
APN
627222058
Size
9,506 SF
Lot size
0.27 Acres
Utilities
Heating system
Central
Building Details
Year built
2000
Listing Agency:
Desert Pacific Properties
(760) 360-8200
Listed By:
Susan Harvey · License #00957590
(760) 360-8200
Added: May 7
Changed: Aug 4
Last Checked: Aug 10 at 9:06PM
MLS# 219147555
Copyright © 2026 California Desert Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 9,506-square-foot multi-tenant office building was constructed in 2000 and includes central heating. The property features a two-level configuration, with a 6,000-square-foot lower level subject to a month-to-month master lease and tenants occupying the second level. Onsite parking includes covered spaces and a parking lot.
The building occupies a signalized corner at Highway 111 and Portola Ave in Palm Desert, with reported traffic of 54,071 average cars per day. Its setting is near El Paseo, a shopping and dining destination that includes Gucci, Restoration Hardware, Louis Vuitton, Mastro's Steakhouse, Anthropologie, and Apple. The property address is 73993 Hwy 111, Palm Desert, CA 92260.
The building occupies a signalized corner at Highway 111 and Portola Ave in Palm Desert, with reported traffic of 54,071 average cars per day. Its setting is near El Paseo, a shopping and dining destination that includes Gucci, Restoration Hardware, Louis Vuitton, Mastro's Steakhouse, Anthropologie, and Apple. The property address is 73993 Hwy 111, Palm Desert, CA 92260.
Key Highlights
- 9,506‑square‑foot multi‑tenant office building constructed in 2000
- 6,000‑square‑foot lower level with a month‑to‑month master lease
- Signalized corner at Highway 111 and Portola Ave
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
$149,355
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
5.06%
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%
$2,987,100
$3.0M
Cap Rate 7%
$2,133,643
$2.1M
Cap Rate 9%
$1,659,500
$1.7M
Market Conditions
NOI Build-Up for 9,506 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
$217.9K $22.92/SF
− Vacancy
−$18.7K −$1.97/SF
EGI
$199.1K $20.95/SF
− OpEx
−$49.8K −$5.24/SF
NOI
$149.4K $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%
$2,987,100
Cap Rate 7%
$2,133,643
Cap Rate 9%
$1,659,500
Alternative Uses
Best Use
Office B
$2.13M
$1.87M – $2.49M
NOI $149,355 @ 7.0% cap · market cap 5.06%
Second Best
Healthcare Medical
$1.38M
$1.21M – $1.61M
NOI $96,654 @ 7.0% cap · market cap 3.28%
Theoretical Best
Office A
$2.85M
$2.49M – $3.32M
NOI $199,349 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,018
Businesses Nearby
Explore this area
Business Placement
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-level office configuration with covered onsite parking and a 6,000-square-foot lower level under a month-to-month master lease.
Where is this office building located?
The property is located at 73993 Hwy 111 Palm Desert, CA.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: 9,506‑square‑foot multi‑tenant office building constructed in 2000; 6,000‑square‑foot lower level with a month‑to‑month master lease; Signalized corner at Highway 111 and Portola Ave
