Palo Alto Office Rent Price & Sales Report

Highlights

  • The average rent for office space in Palo Alto is $83.07 per square foot, 2.13% lower compared to the previous year.
  • The market’s vacancy rate stands at 16.16%, lower than the state average of California, which is 18.44%.

2025 Office Space Rent & Sales

  • $83.07 2025 Avg. Asking Rent
  • -2.13% Y-o-Y Avg. Asking Rent Change
  • 16.16% 2025 Office Vacancy Rate
  • $494.5M2025 Total Office Sales
  • $461.87Avg. Sale Price/SF

What is the average asking rent price for office space in Palo Alto?

Average asking rents for office space here stand at $83.07 per square foot. The local office market recorded an average vacancy rate of 16.16% in 2025, unchanged from 16.16% in 2024.

Office transactions in the local market in 2025 totaled a sales volume of $494.5M across 9 sales. These transactions commanded an average sale price per square foot of $461.87.

Palo Alto, CA Office Asking Rents by Class

What is the average office rent per square foot by property class in Palo Alto?

  • Avg. Asking Rent Class A & A+$105.66
  • Avg. Asking Rent Class B$62.71

What is the average office rent per square foot by property class in CA?

  • Avg. Asking Rent Class A & A+$58.81
  • Avg. Asking Rent Class B$37.82
  • Avg. Asking Rent Class C$22.26

For comparison, the average rent for Class A and A+ office space in California was $58.81 per square foot. The state-wide average for Class B space was $37.82 per square foot, and Class C office spaces averaged $22.26 per square foot.

Explore Top Office Markets in California

2025 Office Sales Volume

  • $461.872025 Avg. Price per SF
  • -29.16%Y-o-Y Avg. PpSF Change
  • $494.5M2025 Office Sales Volume
  • 92025 Number of Transactions

What is the average sale price per square foot for office space in Palo Alto?

Average sale prices for office space in this market recorded a -29.16% change in 2025 compared to the previous year.
Office transactions recorded in the market in 2025 averaged $461.87 per square foot. For comparison, the statewide California average during the same time period stood at $295.06 per square foot, while the national average was $182.48 per square foot.

Palo Alto, CA Sale Price per SF Trend

  • Palo Alto Avg. Sale Price per SF in 2025$461.87
  • California Avg. Sale Price per SF in 2025$295.06

What was the total office sales volume in Palo Alto in 2025?

The local office market recorded 9 deals in 2025, adding up to a yearly sales volume of $494.5M.

  • Palo Alto, CA Total Office Sales Volume in 2025 $494.5M
  • Palo Alto, CA Total Number of Office Sales Closed in 2025 9
Data provided by Yardi Research

2025 Office Construction in Palo Alto, CA

  • Palo Alto, CA Total SF completed in 2025 32,582

How much office space was built in Palo Alto in 2025?

32,582 square feet of new office space was delivered across the market in the previous year. New construction included 1 properties, with an average new property size of 32,582 square feet.

What are the largest recent office completions in Palo Alto?

The largest recent office completion here is Stanford Research Park - 1450 Page Mill Road at 77,634 square feet, completed in 2017. The next largest completions are 3223 Hanover - Building II and 2100 El Camino Real.

Office building Address SF Completed
388 Cambridge 388 Cambridge Avenue, 94306 36,000 2025
3223 Hanover - Building II 3223 Hanover Street, 94304 72,662 2021
Stanford Research Park - 1450 Page Mill Road 1450 Page Mill Road, 94304 77,634 2017
2100 El Camino Real 2100 El Camino Real, 94306 70,816 2017
Foundation Capital 135 Hamilton Avenue, 94301 28,085 2016
600 Ramona Street & 240 Hamilton Avenue 600 Ramona Street & 240 Hamilton Avenue, 94301 15,000 2016
385 Sherman Ave 385 Sherman Ave, 63,618 2015
195 Page Mill Rd 195 Page Mill Rd, 94306 45,000 2015
537 Hamilton Ave 537 Hamilton Ave, 94301 17,150 2013
116 University Ave 116 University Ave, 94301 10,525 2007
Data provided by Yardi Research

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Disclaimer

All information on this page is based on city-level data that includes properties equal to or larger than 25,000 square feet.
Averages were calculated based on values dated between January 1st and December 31st 2025. Construction pipeline data represented herein is valid as of January 2026.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor Yardi Research Data can guarantee that the information provided is complete.