± 63,909 SF Investment Opportunity

About the Project – Avison Young is proud to present 72777 Dinah Shore Drive, a compelling investment opportunity to acquire a purpose-built Regal Theater (DO NOT DISTURB) in Rancho Mirage, CA. Originally constructed as a build-to-suit, the property includes a one-story layout with mezzanine and features 16 screens, including an IMAX auditorium and stadium seating. Strategically located near Highway 10 and Highway 111 in Riverside County, this high-profile asset can be maintained as a theater or repositioned for alternative uses such as medical, retail, entertainment, or hospitality—offering investors multiple paths to value creation.

Ideal Location – Strategically located in the heart of the Coachella Valley trade area–encompassing Palm Desert and Rancho Mirage–the property benefits from excellent accessibility at the southwest corner of Dinah Shore Drive and Monterey Avenue to a multitude of premier resorts and clubs. The site is well-positioned to cater to the entire Coachella Valley community, as well as commuters traveling from outside the area.

Coachella Valley Market Overview – Market observers have noted that a lack of competitive available space contributed to weaker leasing and slower retail tenant occupancy expansion. Subdued leasing and negative absorption also reflect a slowdown in local economic expansion. Employment growth slowed to 1.6% in 2023 and is on pace to rise near 2% in 2024. Meanwhile, migration into the market has slowed from pandemic-era highs. New quarterly retail leasing volume averaged under 1 million SF in 2023-24, declining slightly from 2021-22 levels and falling 25% short of the market’s prior decade quarterly average. Owners are pushing market rents higher, but at a slower pace than in recent years as space availability inches higher. Average market asking rent levels increased around 2% in 2024, below historical averages, following an above-average 5% increase in 2023 and a record 6% increase in 2022.

The Inland Empire leads Southern California in post-pandemic job growth and has significantly outpaced the national average, with an aggregate 8.6% gain based on an increase of over 136,000 workers. Furthermore, the Inland Empire is bucking the trend of moderating job growth seen nationally in 2024.