Retail Investment Opportunity in
For Sale
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1703 E Palmdale Blvd, Palmdale, CA 93550
Single tenant NNN retail investment opportunity in Palmdale, CA.
Property Size7,600 SF
Price / SF$344.74
Days on Market1395
Property Features for 1703 E Palmdale Blvd
General Information
Standard status
Active
Size
7,600 SF
Property subtype
Retail
Lease Type
Net
Investment Type
Net Lease
Net Operating Income
$136,800
Building Details
Tenancy
Single
Listing Agency:
Colliers - Los Angeles - Orange County, California
Listed By:
Eric Carlton · License #CA 01809955
(949) 724-5561
Source:
Crexi
Added: Nov 10, 2022
Changed: Aug 21
Last Checked: Sep 1 at 10:40AM
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 Colliers - Los Angeles - Orange County, California
Investment Insights
Based on property information with market context.
This single-tenant net-leased investment opportunity is fully occupied by WSS (Warehouse Shoe Sale), a Foot Locker subsidiary. The property is located in Palmdale, CA, at the intersection of East Palmdale Blvd (State Rte. 138) and 17th St East, which experiences over 25,800 vehicles per day. The location is near major travel corridors, including California State Rte. 14 and the Pearblossom Hwy. The tenant has a newly signed 5-year extension with an additional five-year option period. The property is a retail investment located on a hard corner signalized intersection with over 5 lease years remaining. The tenant has a BB+ S&P credit rating. The property size is 7,600 square feet.
Key Highlights
- Single tenant net leased investment fully occupied by WSS (Warehouse Shoe Sale), a Foot Locker subsidiary.
- Newly signed 5‑year lease extension with an additional five (5) year option period.
- BB+ (S&P Credit Rating) tenant.
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
$129,707
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
4.95%
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%
$2,594,140
$2.6M
Cap Rate 7%
$1,852,957
$1.9M
Cap Rate 9%
$1,441,189
$1.4M
Market Conditions
NOI Build-Up for 7,600 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
$196.1K $25.80/SF
− Vacancy
−$10.8K −$1.42/SF
EGI
$185.3K $24.38/SF
− OpEx
−$55.6K −$7.31/SF
NOI
$129.7K $17.07/SF
Area
Palmdale, CA
Vacancy
5.50%
Lease Rate
$25.80 /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%
$2,594,140
Cap Rate 7%
$1,852,957
Cap Rate 9%
$1,441,189
Alternative Uses
Best Use
Retail
$1.85M
$1.62M – $2.16M
NOI $129,707 @ 7.0% cap · market cap 4.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.21M
$2.81M – $3.74M
NOI $224,629 @ 7.0% cap · market cap 8.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
804
Businesses Nearby
Explore this area
Business Placement
Demographics for 93550, CA
82,379
Population
23,965
Households
3.4
Avg Household Size
31
Median Age
10%
College-Educated
71%
High-School Grad
259.3 sq mi
ZIP Area
318
Density / Sq Mi
$63,811
Median Household Income
$34,287
Median Earnings
$1,573
Median Rent
$378,700
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 - Single tenant NNN retail investment opportunity in Palmdale, CA.
Where is this retail space located?
The property is located at 1703 E Palmdale Blvd Palmdale, CA.
What is the asking price?
The asking price for this property is $2,620,000.
What are key features of this property?
This property features: Single tenant net leased investment fully occupied by WSS (Warehouse Shoe Sale), a Foot Locker subsidiary.; Newly signed 5‑year lease extension with an additional five (5) year option period.; BB+ (S&P Credit Rating) tenant.
