38423 9th St E, Palmdale, CA 93550

FOR SALE – Freestanding Commercial Building | Owner-User or Investor Opportunity

38423 & 38425 9th Street East, Palmdale, CA 93550

APNs: 3008-035-001 & 3008-035-009

Asking Price: $989,000

Property Overview

Rare opportunity to acquire a well-maintained freestanding commercial building in the heart of Palmdale, ideal for owner-users, medical professionals, or investors seeking stable income with upside.

The property is currently occupied and operated by a long-term dental lab, providing immediate operational credibility. The owner is flexible—willing to relocate, lease back the entire building, or lease a portion, offering multiple exit and income strategies for a buyer.

Building & Site Details

Building Size: Approx. 3,500 SF

Lot Sizes: 6,127 SF + 2,639 SF (two parcels)

Configuration: Freestanding structure

Parking:

Two dedicated on-site parking areas (one on each side of the building)

Additional street parking available

Zoning: Buyer to verify permitted uses

Recent Capital Improvements

Brand-New Roof (2024)

Brand-New HVAC System (2024)

Electrical & Plumbing Upgrades (2018)

Significant capital improvements reduce near-term maintenance risk and support long-term ownership stability.

Tenant / Lease-Back Option

Proposed Lease-Back:

$5,000/month + NNN (entire building)

Flexible terms; partial lease also available

Creates an attractive day-one income stream for investors while preserving future owner-user potential.

Investment Highlights

Attractive Price Point: Approx. $250/SF, well below replacement cost

Projected Gross Income: $60,000 annually (based on proposed lease-back)

Value-Add Upside: Market rents, partial leasing, or future owner-occupancy

Low Capital Risk: Major systems already upgraded

Strong Local Demand: Medical, dental, professional, and light commercial users

Market Overview – Palmdale, CA

Palmdale continues to benefit from:

Steady population growth in North Los Angeles County

Strong demand for medical and professional office space

Limited supply of small freestanding commercial buildings suitable for owner-users

Proximity to major employers, residential neighborhoods, and key transportation corridors

Comparable freestanding commercial properties in Palmdale typically trade in the $275–$350/SF range, positioning this offering as a compelling value with upside.

Ideal For

Medical or dental users

Laboratory, professional office, or specialty service businesses

Owner-users seeking rental income from partial occupancy

Investors looking for stabilized or semi-stabilized assets

Financial Analysis & Cap Rate

Proposed Income (Lease-Back Scenario)

Base Rent: $5,000 / month

Annual Gross Rent: $60,000

Lease Structure: NNN (tenant responsible for property taxes, insurance, and common area expenses)

Estimated NOI: $60,000 annually (NNN structure)

Asking Price

$875,000

Projected Cap Rate

Cap Rate: 6.86%

(Based on $60,000 NOI ÷ $875,000 Purchase Price)

Cap Rate Commentary

A ~6.85% cap rate is strong for a small freestanding commercial asset in Palmdale, particularly with:

Brand-new roof & HVAC

Minimal deferred maintenance

Long-term existing operator

NNN expense pass-through

Comparable small freestanding buildings in the Palmdale market typically trade between 6.25% – 7.25% caps, depending on lease term and tenant strength, placing this asset squarely in-market with upside.

Upside Scenarios

Rent Growth: Future market rents or re-tenanting could push NOI higher

Partial Owner-User: Occupy a portion while offsetting expenses with rental income

Stabilization: Longer-term lease may compress cap rate further upon resale