Palm Springs Market Overview: Key Metrics
The Palm Springs commercial real estate market in 2026 reflects a market shaped by Desert Healthcare District, Palm Springs Unified, Agua Caliente Band of Cahuilla Indians, Eisenhower Health, College of the Desert. Here are the key metrics investors and borrowers should know:
- Multifamily Vacancy: 4.5% — well below the national average, signaling tight supply conditions
- Industrial Vacancy: 5.5% — reflecting strong logistics and distribution demand
- Office Vacancy: 12.0%
- Retail Vacancy: 7.0%
- Rent Growth: 5.8% year-over-year
- Job Growth: 1.5% — tracking near the national average
- Population Growth: 0.9% annually
- Median Asking Rent: $1,850
Multifamily Outlook in Palm Springs
Industrial & Logistics Market
Office & Retail Dynamics
Financing Landscape in Palm Springs
For borrowers in the Riverside-San Bernardino area, current commercial mortgage rates range from 4.50% for agency multifamily to higher rates for transitional and value-add projects. Key factors that influence your rate include property type, leverage, sponsor experience, and asset location within the metro.
Top Submarkets to Watch
The Palm Springs metro features several distinct submarkets that present unique investment opportunities:
- Downtown Palm Springs
- Palm Desert
- Rancho Mirage
- Indian Wells
- La Quinta
- Indio
- Coachella
- Cathedral City
- Desert Hot Springs
- Yucca Valley
- Twentynine Palms
- Banning
Each of these submarkets has distinct characteristics in terms of tenant demand, development activity, and pricing. The top investment corridors in Palm Springs include Palm Springs Downtown, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells.
Investment Outlook: Palm Springs 2026
CLS CRE in Palm Springs
CLS CRE provides commercial mortgage brokerage services throughout the Riverside-San Bernardino metropolitan area, with access to 1,000+ lenders including banks, life insurance companies, CMBS conduits, agency lenders, debt funds, and credit unions. Whether you're acquiring, refinancing, or developing commercial property in Palm Springs, our market expertise and lender relationships help you secure the most competitive terms available.
Explore our financing programs for Palm Springs:
- Bridge Loans in Palm Springs
- Permanent Loans in Palm Springs
- Construction Loans in Palm Springs
- Multifamily Financing in Palm Springs
- Industrial Financing in Palm Springs
- Retail Financing in Palm Springs
Trevor Damyan is a commercial mortgage broker at Commercial Lending Solutions with a background in structured finance at CBRE and Marcus and Millichap Capital Corporation. He specializes in bridge loans, construction financing, SBA programs, DSCR loans, and complex capital structures for investors and developers across all 50 states.
View full profile →