Palo Alto, CA - Office Market Overview
The Palo Alto real estate market includes the Barron Park, College Terrace, and Midtown commercial real estate submarkets. While the city itself is home to a little over 67,000 residents, Palo Alto is also part of the much larger South Bay - San Jose commercial market, which is home to over 2 million people. There is an ever-growing demand for office space in Palo Alto, thanks to the dynamic mix of high technology, incubator, and research & development businesses.
As of mid-2017, the Palo Alto office market encompasses over 9.8 million square feet of existing office space in properties larger than 50,000 square feet. World-renowned Stanford University, Tesla Motors, Hewlett-Packard, and countless other companies create consistent demand for commercial real estate in Palo Alto, CA.
Palo Alto, CA - Office Inventory Description
Because Palo Alto is home to more than 7,000 businesses that employ nearly 100,000 people, the demand for Class A office space in the city is amazingly robust. Nearly 70% of the office space in Palo Alto is Class A or A+, while Class B product brings another 3 million square feet to the office market in the city.
The Palo Alto Downtown North office submarket is one of the many parts of the city that sees strong demand from both tenants and office building investors. Located above University Avenue between Alma Street and Middlefield Road, this area is home to portfolio office buildings such as 525 University Avenue, 101 Lytton Avenue, and the 245 Lytton Avenue office building.
Palo Alto, CA Commercial Inventory Breakdown
Total: 14,080,021 SF
By square footage range:
- 50k to 100k SF: 3,174,121 SF / 22.54% of total office
- 100k to 500k SF: 7,899,297 SF / 56.1% of total office
- 500k to 1M SF: 1,706,603 SF / 12.12% of total office
- > 1M SF: 1,300,000 SF / 9.23% of total office
- Class A: 8,188,756 SF / 58.16% of total office
- Class B: 4,021,680 SF / 28.56% of total office
- Class C: 50,800 SF / 0.36% of total office
Top 10 Largest Office Buildings
in Palo Alto
|Office building||Address||Sqft||Year built|
|The Romic Site||2020 Bay Road, 94303||1,300,000||n/a|
|3825 Fabian Way||3825 Fabian Way, 94303||652,964||1965|
|Stanford Research Park - 3000 Hanover Street||3000 Hanover Street, 94304||546,060||2010|
|Stanford Research Park - 607 & 911 Hansen Way||607 Hansen Way, 94304||507,579||1957|
|Stanford Research Park - VMWare Briefing Center||3401 Hillview Avenue, 94304||433,000||2007|
|Palo Alto Center||795 El Camino Real, 94301||413,800||1947|
|Stanford Research Park - 3500 Deer Creek Road||3500 Deer Creek Road, 94304||350,000||1970|
|Stanford Research Park - Palo Alto Square||3000 El Camino Real, 94306||328,251||1972|
|Stanford Research Park - 3301-3307 Hillview Avenue||3301 Hillview Avenue, 94304||292,013||2002|
|Stanford Research Park - VMWare World Headquarters||3425 Hillview Avenue, 94304||267,595||1965|
Most Recently-Built Office Buildings
in Palo Alto
|Office building||Address||Sqft||Year built|
|Stanford Research Park - 3170 Porter Drive||3170 Porter Drive, 94304||96,626||2018|
|Stanford Research Park - 3421 Hillview Avenue||3421 Hillview Avenue, 94304||86,000||2018|
|2747 Park Blvd||2747 Park Blvd, 94306||33,323||2018|
|University Square||2100 University Avenue, 94303||214,052||2017|
|Stanford Research Park - 1450 Page Mill Road||1450 Page Mill Road, 94304||77,634||2017|
|College Terrace Centre||2100 El Camino Real, 94306||58,572||2017|
|385 Sherman Avenue||385 Sherman Avenue, 94306||68,164||2016|
|Foundation Capital||135 Hamilton Avenue, 94301||28,085||2016|
|Stanford Research Park - 1400 Page Mill Road||1400 Page Mill Road, 94304||89,584||2015|
|John & Susan Sobrato Campus - 1885 Bay Road||1885 Bay Road, 94303||38,800||2015|
Palo Alto, CA - Green Office Space
There are eight energy-efficient office buildings larger than 50,000 square feet in the city, that bring over 1.4 million square feet of green office space to Palo Alto. Over the years, the demand for green buildings, LEED-certified and EPA Energy Star-rated office space in Palo Alto and the rest of the country has grown by leaps and bounds. A great example of a LEED-certified office building in Palo Alto CA is University Circle - 1900 University Circle. Located in the East Palo Alto commercial real estate submarket of the city, this building was constructed in 2001 and adds nearly 150,000 square feet of Class A LEED Gold-certified office space to the Palo Alto commercial real estate market.
It's not just in Palo Alto that the demand for green office space is strong. California is home to six of the top 30 largest U.S. green office markets. According to the 2017 National Green Building Adoption Index, the amount of energy-efficient, green office space has grown by about 33% over the past 12 years.
Palo Alto, CA's Top Office-Using Sectors
The Palo Alto commercial real estate and Class A office market sees an ever-increasing demand from the top office-using sectors in Palo Alto of high technology, education, healthcare, and large corporate office users.
- High Technology – Hewlett-Packard, VMware, Tesla Motors, Skype, and Palantir Technologies are just a few of the high-tech companies that create robust demand for white collar office space in Palo Alto.
- Education – Stanford University, along with the numerous R&D businesses the institution attracts, helps to drive demand for commercial real estate in Palo Alto.
- Healthcare – Institutions such as Stanford Health Care, Lucile Packard Children's Hospital, and the Palo Alto Medical Foundation are some of the largest employers and users of office space in Palo Alto, California.
- Corporate Offices – SAP, Space Systems/Loral, A9.com, Cloudera, Houzz, Mashable, and Xerox are some of the larger corporate office users in Palo Alto.
Palo Alto Demographics
- Total Population67,082
- Male Population(49.4 %) 33,155
- Female Population(50.6 %) 33,927
- Median Age41.80
- Average Household Income$207,423
- Median Household Income$147,537
- Median Income Under 25$79,375
- Median Income 25-44$160,630
- Median Income 45-64$196,783
- Median Income Over 65$88,433
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