Palo Alto, CA
Commercial Real Estate Market Trends & Data

$914 Avg asking sale price
$138 Avg asking lease rate
26,225 SF Avg unit lease size
12,914 SF Avg building size for sale
4.43% Average cap rate

Palo Alto's Demographic Profile

Palo Alto has 25,838 households and a median income of $209,152, providing context for rent absorption and tenant demand across retail and multifamily assets. A -3% five-year population trend is a key signal for evaluating long-term demand in this market.

Key Demographic Metric Value
Population 66,706
# Households 25,838
Median age 43
Median household income $209,152
Avg household size 3.0
Renter-occupied housing units 12,369
5-year population change -3%

{{marketTabHeadings[activeMarketTab]}} Market Metrics Near Palo Alto, CA

↻ Updated Monthly

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Nearby Office Markets Avg Cost/SF Typical Size Cap Max
Palo Alto $888 10,709 SF 6.00%
Los Altos $938 7,499 SF 4.56%
Stanford $1,001 9,007 SF 6.00%
Mountain View $1,239 7,717 SF 4.56%
Nearby Retail Markets Avg Cost/SF Typical Size
Palo Alto $937 12,524 SF
Los Altos Hills $1,798 2,500 SF
Los Altos $1,195 3,572 SF
Stanford $1,146 5,940 SF
Mountain View $741 16,986 SF
Nearby Multifamily Markets Avg Cost/SF Typical Size Cap Max
Palo Alto $907 10,126 SF 5.80%
Los Altos $788 3,495 SF 5.80%
Stanford $1,411 4,557 SF 3.40%
Mountain View $651 7,908 SF 5.80%
Menlo Park $772 15,978 SF 4.30%

Commercial Properties For Sale in Palo Alto

The listings below reflect how current market pricing and building scale translate into active opportunities available today.
For Sale

DOWNTOWN MOUNTAIN VIEW! NEW ASKING PRICE!

Mountain View, CA 94041

  • 4,643 SF Multifamily
  • 4.56% Cap Rate
  • $2,750,000
For Sale

530 Webster St

Palo Alto, CA 94301

  • 10,336 SF Multifamily
  • 4.26% Cap Rate
  • $10,500,000
For Sale

1129 Willow Rd, Menlo Park, CA 94025

Menlo Park, CA 94025

  • 3,852 SF Multifamily
  • 4.30% Cap Rate
  • $1,880,000
For Sale

1751 Alma St

Palo Alto, CA 94301

  • 1,716 SF Multifamily
  • $2,300,000
For Sale

1061 Alma St

Palo Alto, CA 94301

  • 2,577 SF Multifamily
  • 2.95% Cap Rate
  • $3,500,000
For Sale

990 Garden St

East Palo Alto, CA 94303

  • 1.17 AC Lot
  • 1 Residential Income Lot
  • $7,000,000

Average Price For Sale

↻ Updated Monthly

Average Price For Lease

↻ Updated Monthly

Number of Listings

↻ Updated Monthly

Cap Rate

↻ Updated Monthly

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Nearby Commercial Markets

Comparing nearby markets helps investors see whether Palo Alto pricing and building scale sit above, below, or in line with surrounding areas.

Commercial Markets Avg Cost/SF Average Size
Palo Alto $914 12,914 SF
Los Altos Hills $1,798 10,848 SF
Los Altos $1,005 4,769 SF
Stanford $1,216 7,246 SF
Mountain View $788 34,641 SF

Multifamily Properties For Sale in Palo Alto

For Sale

1804 Bay Rd

East Palo Alto, CA 94303

  • 102,753 SF Multifamily
  • $7,950,000
For Sale

102 University Ave

Palo Alto, CA 94301

  • 17,000 SF Multifamily
  • Price Upon Request

Regional Demographic Comparison

This comparison places Palo Alto alongside nearby cities to show how population size, household counts, and income levels differ across the region. Viewing these markets side by side helps investors understand whether local demand and income characteristics are concentrated in Palo Alto or distributed across surrounding areas.

City Population # Households Age Median Household Income Avg Household Size Renter Occupied Housing Units Five Yr Pop Growth %
Palo Alto 66,706 25,838 43 $209,152 3 12,369 -3%
Los Altos Hills 7,750 2,598 53 $249,855 3 275 -4%
Los Altos 29,896 10,403 48 $245,147 3 2,067 -4%
Stanford 21,361 4,929 29 $62,230 2 4,149 -2%
Mountain View 87,536 36,392 38 $172,116 2 22,797 -1%

Disclaimer: The figures on this page reflect LoopNet's active commercial listings in Palo Alto, CA and update as inventory changes. Averages can shift between periods or vary across property types depending on the mix of listings available at a given time, so individual metrics may not reflect broader market trends. These figures are best used as directional benchmarks for early market evaluation. For comprehensive commercial real estate data and analytics, subscribe to CoStar.

FAQs About Commercial Investing in Palo Alto

View All Commercial Real Estate For Sale in Palo Alto
Is Palo Alto a good market for a first-time commercial real estate investor?

Palo Alto offers commercial properties across a wide range of sizes and price points. By reviewing the market data and benchmarks on this page, first-time investors can better understand what a typical commercial property looks like before committing capital and narrowing in on specific listings.

How can this market data help me decide whether to buy commercial property for my business in Palo Alto?

The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in Palo Alto. Typical building sizes and asking prices provide a starting point for evaluating space needs, budget fit, and long term occupancy costs before engaging lenders or brokers.

What should conservative investors focus on when evaluating commercial properties in Palo Alto?

Conservative investors often prioritize manageable deal sizes, stable pricing ranges, and cap rate benchmarks shown for Palo Alto. These metrics help assess whether current market conditions support steady income potential without relying on aggressive assumptions.

How does Palo Alto compare to nearby commercial real estate markets?

Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to Palo Alto. Reviewing these side by side helps experienced investors identify relative value, pricing premiums, or alternative markets that may better align with return targets.

How can this page support early-stage deal screening for Palo Alto acquisitions?

This page provides high-level benchmarks for pricing, deal size, and observed cap rates in Palo Alto, which are useful for initial market filtering. Institutional and data-driven investors often use these signals to prioritize listings that meet size, pricing, and return thresholds before deeper underwriting.

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