Palo Alto, CA
Commercial Real Estate Market Trends & Data

$972 Avg asking sale price
$56 Avg asking lease rate
23,119 SF Avg unit lease size
12,315 SF Avg building size for sale
4.36% 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

{{marketTabDescriptions[activeMarketTab]}}

Nearby Office Markets Avg Cost/SF Typical Size Cap Max
Palo Alto $1,053 9,525 SF 6.00%
Stanford $954 9,007 SF 6.00%
Mountain View $1,471 8,384 SF 6.50%
Nearby Industrial Markets Avg Cost/SF Typical Size Cap Max
Palo Alto $492 14,520 SF 5.58%
Mountain View $842 11,026 SF 6.50%
Nearby Retail Markets Avg Cost/SF Typical Size
Palo Alto $1,114 12,772 SF
Los Altos Hills $1,798 2,500 SF
Los Altos $1,798 3,000 SF
Stanford $1,163 7,676 SF
Mountain View $851 16,062 SF
Nearby Multifamily Markets Avg Cost/SF Typical Size Cap Max
Palo Alto $918 10,299 SF 5.80%
Los Altos $837 3,208 SF 5.80%
Stanford $1,916 4,571 SF 3.51%
Mountain View $710 7,160 SF 5.80%
Menlo Park $765 14,264 SF 4.78%

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

Open house 7/17/26 2-3 PM

Menlo Park, CA 94025

  • 5,220 SF Multifamily
  • 3.69% Cap Rate
  • $4,788,888
For Sale

2134 Old Middlefield Way

Mountain View, CA 94043

  • 11,388 SF Industrial Building
  • 5.58% Cap Rate
  • $5,600,000
For Sale

837 Cowper St

Palo Alto, CA 94301

  • 12,830 SF Multifamily
  • 4.56% Cap Rate
  • $11,000,000
For Sale

Bldg C

Palo Alto, CA 94306

  • 14,550 SF Office Building
  • $1,395,000
For Sale

510 Waverley St

Palo Alto, CA 94301

  • 2,570 SF Office Building
  • $3,950,000
For Sale

Palo Alto Luxury Senior Living Development

Palo Alto, CA 94303

  • 0.45 AC Lot
  • 1 Commercial Lot
  • $15,000,000

Average Price For Sale

↻ Updated Monthly

Average Price For Lease

↻ Updated Monthly

Number of Listings

↻ Updated Monthly

Cap Rate

↻ Updated Monthly

How Investors Evaluate Commercial Real Estate Markets

Where Multifamily Asking Prices Are Rising and Falling in 2026
Where Multifamily Asking Prices Are Rising and Falling in 2026
LoopNet listing data from November 2025 through March 2026 reveals a supply-driven split in multifamily asking prices across U.S. markets, and what it means for investors deciding where to buy.
Online Auctions vs. Traditional Sales
Online Auctions vs. Traditional Sales
Learn how you can strategically use the two transaction methods to achieve stronger outcomes, whether that's a faster deal, maximized sales price, or a low risk of fallouts.
What Are Leasehold Improvements?
What Are Leasehold Improvements?
A complete guide to leasehold improvements, including what qualifies, who owns them, how they affect taxes, and how to maximize their value.
Straight-Line Depreciation in Commercial Real Estate
Straight-Line Depreciation in Commercial Real Estate
Understand how straight-line depreciation works, when to use it, and how it affects your after-tax returns across every stage of ownership.
Small vs. Large Multifamily Real Estate Investing
Small vs. Large Multifamily Real Estate Investing
Compare financing, cash flow, risk, and exit options so you can choose the right property size for your goals.
How to Buy a Duplex
How to Buy a Duplex
Breaking down every stage of buying a duplex, from budgeting and financing to agent selection and market analysis, ensuring you make an informed investment decision.
Spec Suites: A Powerful Tool in the Battle To Fill Office Space
Spec Suites: A Powerful Tool in the Battle To Fill Office Space
New Space, Quick Occupancy, No Construction
Force Majeure Clause
Force Majeure Clause
Understand how force majeure clauses work in commercial real estate leases, including what they cover, when they apply, and how to draft them to manage risk.

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 $972 12,315 SF
Los Altos Hills $1,648 9,768 SF
Los Altos $1,115 4,459 SF
Stanford $1,203 7,717 SF
Mountain View $1,238 33,836 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.

Nearby Market Trends