Prime Location Near El
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74090 El Paseo, Palm Desert, CA 92260
Located near El Paseo shopping district with upscale amenities.
Property Size12,870 SF
Price / SF$322.69
Days on Market1835
Property Features for 74090 El Paseo
General Information
Standard status
Active
Size
12,870 SF
Class
C
Property subtype
Office
Zoning
Downtown District
Occupancy
80%
Lease Type
NNN
Building Details
Year Built
1978
Stories
2
Tenancy
Multi
Listing Agency:
Desert Pacific Properties Inc
(760) 360-8200
Listed By:
Susan Harvey · License #CA 00957590
Source:
Crexi
Added: Aug 4, 2021
Changed: Aug 8
Last Checked: Aug 8 at 11:30AM
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 Desert Pacific Properties Inc
Investment Insights
Based on property information with market context.
This property is situated at the intersection of Highway 111 and El Paseo Drive, positioned at the east end of the El Paseo shopping district. The El Paseo Shopping District, characterized as the 'Rodeo Drive of the Desert', is a nine-block outdoor shopping area featuring over 200 shops, art galleries, dining options, and other amenities. The property encompasses a total area of 12870 square feet.
Key Highlights
- Prime location at the intersection of Highway 111 and El Paseo Drive.
- Situated at the east end of the El Paseo shopping district.
- Located in the 'Rodeo Drive of the 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
$202,209
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
4.87%
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%
$4,044,180
$4.0M
Cap Rate 7%
$2,888,700
$2.9M
Cap Rate 9%
$2,246,767
$2.2M
Market Conditions
NOI Build-Up for 12,870 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
$295.0K $22.92/SF
− Vacancy
−$25.4K −$1.97/SF
EGI
$269.6K $20.95/SF
− OpEx
−$67.4K −$5.24/SF
NOI
$202.2K $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%
$4,044,180
Cap Rate 7%
$2,888,700
Cap Rate 9%
$2,246,767
Alternative Uses
Best Use
Office B
$2.89M
$2.53M – $3.37M
NOI $202,209 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.86M
$3.37M – $4.50M
NOI $269,894 @ 7.0% cap · market cap 6.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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
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 - Located near El Paseo shopping district with upscale amenities.
Where is this office building located?
The property is located at 74090 El Paseo Palm Desert, CA.
What is the asking price?
The asking price for this property is $4,153,000.
What are key features of this property?
This property features: Prime location at the intersection of Highway 111 and El Paseo Drive.; Situated at the east end of the El Paseo shopping district.; Located in the 'Rodeo Drive of the Desert'.
