A New Lens on the Greater Palm Springs Economy Through Commercial Real Estate
Every time a major commercial property hits the market, it tells a story about the economy around it – sometimes one of growth and confidence, other times one of transition or strain. These listings aren’t just real estate transactions; they’re also indicators of where the local economy is heading.
That’s why What’s For Sale isn’t just another property roundup. It’s a business intelligence column for everyone who cares about the region’s economic pulse – developers, bankers, city leaders, investors, and anyone tracking how money, land, and opportunity move through the desert. Whether you’re looking to invest, compete, or stay informed, this column helps decode what the deals on LoopNet and beyond really say about the health and direction of Greater Palm Springs.
The following high-profile properties are offered for sale:
Palm Desert Area | Hospitality | DSRT Surf Hotel Lot with Resort Rights
Property: DSRT Surf Hotel Lot + F&B/Entertainment Rights
Program: 139 rooms, 155,244 SF buildable hotel, plus 46,680 SF podium parking
Rights Offered: Food, Beverage, and Entertainment
Projected Opening: May 2026
Market Intel: Few opportunities in the valley combine both hotel and entertainment revenue rights under one umbrella. With the construction of the surfing facility reportedly progressing significantly and a targeted May 2026 opening, this project could redefine destination tourism in Greater Palm Springs by merging sports, lifestyle, and hospitality. However, the listing shows that the progress toward developing the hotel within the project, permitted by the city of Palm Desert as the keystone of the project, is nowhere close to delivering on the transient occupancy tax the city desired for its flagship municipal golf and meeting facility when it was approved.
Overview: DSRT Surf is positioning itself as the region’s first surf-anchored resort destination. The current offering combines the hotel development lot with resort-wide food, beverage, and entertainment rights tied to the planned surf lagoon. The package allows the buyer to control F&B operations across the resort or lease the rights back to ownership “at a premium to market.” Entitlements permit live entertainment until midnight on weekends and 10 p.m. on weekdays, with concerts and large events also allowed.
Coachella | Industrial | Cannabis Campus Under Court Order
Address: 84829–84849 Avenue 48, Coachella
Offering: 108,229 SF across nine buildings on six acres
Asking Price: $30,000,000 (reduced from $40,000,000)
Cap Rate (Projected 2027): 9.32%
Lease Rates: $2.50–$3.00/SF NNN
Market Intel: This listing underscores the continued consolidation and financial pressure within California’s cannabis industry. For opportunistic investors, the Coachella Campus offers a rare opportunity to acquire a nearly complete facility at a fraction of its replacement cost, with built-in expansion capacity and long-term leasing potential in a city that actively supports cannabis zoning. Whether it’s a viable and profitable business in today’s extremely competitive and highly taxed cannabis market or not is a big question.
Overview: This sprawling purpose-built cannabis cultivation and manufacturing complex represents one of the largest single industrial offerings in the eastern valley this year – and it comes with a story. The property is being sold through a court-ordered bankruptcy process, with a firm offer deadline and a substantial price reduction of $10 million. Two of the nine buildings remain under construction, with an estimated $6.6 million needed for completion. The site includes power infrastructure and secured perimeters designed for licensed cannabis operations.
Cathedral City | Retail | Marketplace Anchored by Food 4 Less
Property: Cathedral City Marketplace (Dinah Shore Dr. & Date Palm Dr.)
Asking Price: $33,660,000
Cap Rate: 6.50%
Occupancy: 93%
Average WALT: 10 years
Market Intel: Traffic data and rent comps suggest that shop space here still trades roughly 20% below market, offering a clear value-add story. Its proximity to Disney’s Cotino master-planned community, in the early stages of development with 1,900 homes, gives this asset long-term demographic tailwinds; however, it has substantial existing and planned higher-quality competition more suitable for the likely new homeowners.
Overview: Cathedral City Marketplace remains one of the region’s most visited retail centers, attracting over 2.5 million visitors annually, including more than 900,000 to Food 4 Less, which has been the site’s anchor since 1990 and has recently extended its lease through 2035. The 10-year lease signed by Fun City, an indoor family entertainment tenant, adds a strong experiential anchor, while new arrivals, such as Dutch Bros and Sun Community Credit Union, diversify the tenant base. With four parcels and a potential spinoff strategy, investors can tailor ownership or disposition approaches.
Indian Wells | Medical Office | Prime Highway 111 Exposure
Property: Indian Wells Medical & Professional Center, 74785 Highway 111
Size: 40,750 SF on 2.75 acres
Asking Price: $11,670,000
Cap Rate: 7.00% (93% occupied), 7.60% (pro forma)
Frontage: ±260 feet | Traffic: ±40,700 vehicles per day
Market Intel: With the city’s affluent demographic and limited office inventory, this property’s blend of medical and financial tenants provides durable income for the owner. The recent rent escalation trend signals upside even in a stabilized asset class. The location’s medical zoning and visibility make it one of the few institutional-quality office investments available in Indian Wells.
Overview: Set along the main Highway 111 corridor, this two-story Class B+ complex offers strong tenant diversity in a high-barrier market. The center is anchored by HALO Diagnostics, which has recently renewed its lease for 10 years, and also includes Charles Schwab among its professional tenants. In-place rents average $1.89/SF NNN, but recent renewals have achieved $2.91/SF NNN, reflecting a measurable increase in rent growth.
La Quinta | Retail | “Amazon Fresh” Box on Highway 111
Address: 78945 Highway 111, La Quinta
Building Size: 36,876 SF
Asking Price: $11,677,000
Cap Rate: 6.00%
Status: Active on Market Since July 2025
Market Intel: Amazon has publicly stated that it is moving away from its Amazon Fresh store concept, having announced the closure of three Southern California and 14 UK stores last week as it focuses on its online and Whole Foods strategies. The property sets a pricing benchmark for the Highway 111 corridor retail market, where big-box opportunities have become increasingly scarce. Its existing improvements allow for quick occupancy or adaptive reuse. While the site’s operational future remains unannounced, its high visibility and infrastructure position it for repositioning by national tenants or specialty grocers.
Overview: This freestanding retail property, marketed under the “Amazon Fresh” name, offers a fully built-out grocery box along one of La Quinta’s busiest commercial corridors.
La Quinta | Mixed-Use | Old Town Expands with Building 2
Property: Old Town La Quinta, Restaurant, Building 2, Land
Status: Active marketing phase
Market Intel: As Old Town La Quinta nears full build-out after 22 years, this next phase opens doors for boutique retailers, creative office spaces, and restaurant operators seeking proximity to the area’s year-round tourists, snowbirds and residents in and around south La Quinta.
Overview: Old Town La Quinta continues to evolve in its effort to become one of the desert’s signature pedestrian centers. Marketing materials indicate that Building 2 is now being promoted, following the success of Building 1, which houses the established Fortun restaurant and bar.
What’s For Sale: Property Snapshot
- Industrial (Coachella): $30M ask, 9.32% cap (2027), $6.6M completion cost, court-supervised sale
- Retail (Cathedral City): $33.66M, 6.5% cap, 93% occupancy, 2.5M annual visits
- Medical Office (Indian Wells): $11.67M, 7% cap, 93% occupied, recent rent growth 54%
- Retail (La Quinta): $11.68M, 6% cap, 36,876 SF, former Amazon Fresh site
- Hospitality (DSRT Surf): 139 keys, 155K SF buildable, F&B rights packaged, target opening May 2026
Editor’s Note:
All figures and terms are drawn from current Loopnet, Commercial Café, and broker marketing materials and are subject to verification. For investment or leasing inquiries, contact the listing agents directly.
“What’s For Sale” is a regular feature highlighting commercial properties shaping the Greater Palm Springs business landscape. To have a major, high-profile listing considered for inclusion, email bob@gpsbusinessinsider.com.
