Palo Alto Office Rent Price & Sales Report

2020 Office Space Rent & Sales

  • $86.43 2020 Avg. Asking Rent
  • 0.85% Y-o-Y Avg. Asking Rent Change
  • 12.29% 2020 Office Vacancy Rate
  • $506.2M2020 Total Office Sales
  • $1,094.26Avg. Sale Price/SF

Palo Alto office price per square foot in 2020 was $86.43 on average. This marked a +0.85% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 12.29% across all asset classes combined. The 6 transactions that closed here throughout 2020 amounted to a total sale volume of $506.2M. Palo Alto office space commanded an average sale price per square foot of $1,094.26.

Average Rent by Office Class

2020 Average Office Rent per Square Foot

  • Palo Alto Class A Office Space$86.37
  • Palo Alto Class B Office Space$86.59
  • California Class A Office Space$55.92
  • California Class B Office Space$35.12
  • California Class C Office Space$23.50

Palo Alto, CA Office Asking Rents by Class

Palo Alto Office Sale Price per SF

  • $1,094.262020 Avg. Price per SF
  • $506.2M2020 Office Sales Volume
  • 62020 Number of Transactions

Palo Alto, CA Sale Price per SF Trend

  • Palo Alto Avg. Sale Price per SF in 2020$1,094.26
  • California Avg. Sale Price per SF in 2020$432.41
The sale price for office space in Palo Alto averaged $1,094.26 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide California average office sale price during the same time period was $432.41 per square foot.

2020 Office Sales Volume

  • Palo Alto, CA Total Office Sales Volume in 2020 $506.2M
  • Palo Alto, CA Total Number of Office Sales Closed in 2020 6
A total of 6 deals closed on the Palo Alto office market in 2020, adding up to a yearly sales volume of $506.2M. Notably, the largest transaction on the market saw Stanford Research Park - 3380 Coyote Hill Road change hands for $123,000,000 on 12/4/2020.

Largest Palo Alto Office Sales in 2020

Property name Address Date Price
Stanford Research Park - 3380 Coyote Hill Road 3380 Coyote Hill Road 12/4/2020 $123,000,000
3181 Porter Drive 3181 Porter Drive 8/7/2020 $115,200,000
College Terrace Centre 2100 El Camino Real 12/30/2020 $103,600,000
Stanford Research Park - 3412 Hillview Avenue 3412 Hillview Avenue 2/5/2020 $56,124,000
Baylands Business Park 2440 Embarcadero Way 12/16/2020 $47,955,000
Data provided by Commercial Edge

2020 Office Construction in Palo Alto, CA

  • Palo Alto, CA Total SF completed in 2020 416,003
  • Palo Alto, CA Total SF under construction in 2021 72,662

During 2020, 416,003 square feet of new office space were delivered across the market. At the close of 2020, the Palo Alto office inventory included 5 buildings equal to or larger than 25,000 square feet, which comprised 416,003 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 72,662 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Palo Alto
Office building Address SF Completed
1025 East Meadow Circle 1025 East Meadow Circle, 94303 25,019 2022
3223 Hanover - Building II 3223 Hanover Street, 94304 72,662 2021
3223 Hanover - Building I 3223 Hanover Street, 94304 119,700 2020
Stanford Research Park - 3380 Coyote Hill Road 3380 Coyote Hill Road, 94304 85,420 2020
Stanford Research Park - Building 1 1000 Page Mill Road, 94304 82,662 2020
Stanford Research Park - Building 4 1250 Page Mill Road, 94304 72,812 2020
2600 El Camino Real 2600 El Camino Real, 94306 62,616 2020
Stanford Biomedical Innovation Building 240 Pasteur Drive, 94304 215,500 2019
3181 Porter Drive 3181 Porter Drive, 94304 99,415 2019
3045 Park Blvd 3045 Park Blvd, 94306 31,500 2019

Worth noting among recent office completions on the Palo Alto market is 1025 East Meadow Circle, which is currently the largest new office development in the city, at 25,019 square feet.

Data provided by Commercial Edge

See reports for nearby markets

This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Palo Alto commercial properties sized 25,000 square feet or larger.

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 CommercialEdge can guarantee that the information provided is complete.