Beaumont / Hemet Retail — Market Snapshot
Market Sentiment: CAUTIOUS — Pricing stable but volume contracting; yield premium rewards patience. Properties trading are 95.7% leased (stabilized), but sellers asking too much relative to buyer valuations (-10.8% sale vs. asking). Not distress — normalization after a strong 2024 ($97M volume).
$2.9B
Total Asset Value
▼ -0.4% YoY
$46.8M
12-Mo Sales Volume
▼ -38% vs 5yr avg
6.7%
Market Cap Rate
▲ +20 bps YoY
$245
Market $/SF
▼ -0.4% YoY
-10.8%
Sale vs Asking
▼ Buyer's market
95.7%
Avg % Leased at Sale
▲ Stabilized
5.9
Median Months to Sale
● 6 mo avg cycle
6.4%
IE Avg Cap Rate
● 30 bps spread
Historical Sales Trends (2015–2030F)
Avg $/SF
Cap Rate %
Growth Trajectory: 39% price appreciation since 2015 ($176→$245/SF, 3.1% CAGR). CoStar projects $279/SF by 2030 — 14% upside from current pricing with cap rate compression to 6.5%.
Pricing by Star Rating
| Tier | Price Range | Cap Rate | Commentary |
|---|---|---|---|
| 4-5 Star | $260–$300/SF | 6.0–6.4% | Institutional quality, NNN anchored |
| 3 Star | $200–$260/SF | 6.4–6.8% | Sweet spot for private capital |
| 1-2 Star | $150–$200/SF | 6.8–7.5%+ | Value-add, repositioning plays |
Pricing by Property Type (2025)
| Type | Avg $/SF | 2025 Deals |
|---|---|---|
| General Retail | $260 | 12 |
| Strip Center | $250 | 15 |
| Power Center | $239 | 5 |
| Neighborhood Center | $220 | 8 |
Submarket Competitive Position
Beaumont/Hemet ranks #12 of 15 IE submarkets by volume ($46.8M) but #2 by transaction count (40 deals). The 6.7% cap rate ties for the highest yield with Mojave River Valley. Market pricing of $245/SF sits 15.5% below the IE average of $290/SF — attracting outside capital seeking yield.
The Yield Play: 30–50 bps premium over primary IE corridors for 1031 buyers seeking tax-advantaged returns without institutional bidding pressure.