Palo Alto, CA Office Overview
The Palo Alto real estate market includes the Barron Park, College Terrace, and Midtown submarkets. While the city itself is home to a little over 67,000 residents, Palo Alto is also part of the larger South Bay 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 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 office space.
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 is amazingly robust. Nearly 70% of the office space is Class A, while Class B accounts for another 3 million square feet.
The Downtown North district is one of the many areas that sees strong demand from both tenants and investors. Located west of University Avenue, between Alma Street and Middlefield Road, this area is home to properties such as 525 University Avenue, 101 Lytton Avenue, and 245 Lytton Avenue.
Palo Alto, CA Commercial Inventory Breakdown
Total: 14,796,620 SF
By square footage range:
- 50k to 100k SF: 3,450,759 SF / 23.32% of total office
- 100k to 500k SF: 7,817,504 SF / 52.83% of total office
- 500k to 1M SF: 2,228,357 SF / 15.06% of total office
- > 1M SF: 1,300,000 SF / 8.79% of total office
- Class A: 8,319,199 SF / 56.22% of total office
- Class B: 4,610,636 SF / 31.16% of total office
- Class C: 50,800 SF / 0.34% 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 - 1501 Page Mill Road||1501 Page Mill Road, 94304||521,754||1957|
|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|
Most Recently-Built Office Buildings
in Palo Alto
|Office building||Address||Sqft||Year built|
|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||31,354||2019|
|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|
|Stanford Research Park - 1050 Page Mill Road - Building 3||1050 Page Mill Road, 94304||76,547||2018|
|Stanford Research Park - 1050 Page Mill Road - Building 2||1050 Page Mill Road, 94304||66,697||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|
Palo Alto, CA Green Office Space
There are eight energy-efficient office buildings in the city, that have 1.4 million square feet of office space combined. Over the years, the demand for green buildings, LEED-certified and EPA Energy Star-rated office space has grown by leaps and bounds. A great example of a LEED-Certified property is University Circle - 1900 University Circle. The property was constructed in 2001 and adds nearly 150,000 square feet of Class A LEED-Certified Gold office space to the 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
Significant demand for Class A office space comes from the high technology, education, healthcare, and large corporate office user segments.
- High Technology – Hewlett-Packard, VMware, Tesla Motors, and Palantir are just a few of the high-tech companies creating robust demand for creative office space.
- Education – Stanford University, along with the numerous R&D businesses the institution attracts, helps to drive demand for commercial real estate.
- Healthcare – 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 the city.
- Corporate Offices – SAP, Space Systems/Loral, A9.com, Cloudera, Houzz, Mashable, and Xerox are some of the larger corporate office users in the city.
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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