Multi-Tenant Office
For Sale
$2,950,000
73993 Hwy 111, Palm Desert, CA 92260
Commercial Sale, Palm Desert, CA
Property Size9,790 SF
Lot Size0.27 Acres
Price / SF$301.33
Days on Market142
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
9,790 SF
Lot size
0.27 Acres
Utilities
Heating system
Central
Amenities
covered parking
signage
Building Details
Year built
2000
Listing Agency:
Desert Pacific Properties
(760) 360-8200
Listed By:
Susan Harvey · License #00957590
(760) 250-8992
Added: May 7
Changed: Sep 11
Last Checked: Sep 25 at 1:06AM
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.
Built in 2000, this 9,790-square-foot multi-tenant office building includes a 6,000-square-foot lower level under a month-to-month master lease and occupied space on the second level. Central heating and covered on-site parking are among the property improvements, while the building’s office configuration supports professional occupancy.
The property sits at the signalized intersection of Highway 111 and Portola Ave in Palm Desert, where the source reports average traffic of 54,071 cars per day. Its location is near El Paseo, a shopping and dining destination with retailers and restaurants including Gucci, Restoration Hardware, Louis Vuitton, Mastro’s Steakhouse, Anthropologie, and Apple. The site encompasses 0.27 acres.
The property sits at the signalized intersection of Highway 111 and Portola Ave in Palm Desert, where the source reports average traffic of 54,071 cars per day. Its location is near El Paseo, a shopping and dining destination with retailers and restaurants including Gucci, Restoration Hardware, Louis Vuitton, Mastro’s Steakhouse, Anthropologie, and Apple. The site encompasses 0.27 acres.
Key Highlights
- 9,790 SF multi‑tenant office building
- 6,000 SF lower level subject to 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
$153,817
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
5.21%
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%
$3,076,340
$3.1M
Cap Rate 7%
$2,197,386
$2.2M
Cap Rate 9%
$1,709,078
$1.7M
Market Conditions
NOI Build-Up for 9,790 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
$224.4K $22.92/SF
− Vacancy
−$19.3K −$1.97/SF
EGI
$205.1K $20.95/SF
− OpEx
−$51.3K −$5.24/SF
NOI
$153.8K $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%
$3,076,340
Cap Rate 7%
$2,197,386
Cap Rate 9%
$1,709,078
Alternative Uses
Best Use
Office B
$2.20M
$1.92M – $2.56M
NOI $153,817 @ 7.0% cap · market cap 5.21%
Second Best
Healthcare Medical
$1.42M
$1.24M – $1.66M
NOI $99,542 @ 7.0% cap · market cap 3.37%
Theoretical Best
Office A
$2.93M
$2.57M – $3.42M
NOI $205,304 @ 7.0% cap · market cap 6.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,351
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Signalized-corner positioning, covered parking, and on-site signage support convenient access for office occupants.
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: 9,790 SF multi‑tenant office building; 6,000 SF lower level subject to a month‑to‑month master lease; Signalized corner at Highway 111 and Portola Ave
