Two-Building Office
For Sale
Contact for pricing
235 Alma St, Palo Alto, CA 94301
Two-building office property with recently completed exterior renovations, brand-new interiors, and zoning CD-N(P) with legal nonconforming SFR use.
Property Size3,940 SF
Price / SF$1,140
Days on Market76
Property Features for 235 Alma St
General Information
Standard status
Active
Size
3,940 SF
Property subtype
OFFICE
Zoning
CD-N(P)
Additional Details
Public Transit
Yes
Amenities
professional landscaping
natural light
Building Details
Buildings
2
Listing Agency:
Newmark | San Francisco
(650) 473-4761
Listed By:
David Osuch · License #RE#01896600
Source:
Moodyscre
Added: May 28
Changed: Jul 31
Last Checked: Jul 31 at 12:58AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Newmark | San Francisco
Investment Insights
Based on property information with market context.
This two-building office property at 235 Alma St, Palo Alto, features extensive exterior renovations recently completed and clean, brand new interiors throughout. The front building offers approximately 2,560 RSF, with office space on the main level (about 1,190 RSF), upper level (about 415 RSF), and lower level (about 955 RSF). A rear office/flex building adds approximately 1,380 SF. The property also provides professional landscaping and excellent natural light in both buildings.
On-site parking is available, with street parking nearby, and the property is in close proximity to the Palo Alto Caltrain station.
Zoning is CD-N(P), with SFR use legal non-conforming, and CA Senate Bill 79 (SB 79) applicable.
On-site parking is available, with street parking nearby, and the property is in close proximity to the Palo Alto Caltrain station.
Zoning is CD-N(P), with SFR use legal non-conforming, and CA Senate Bill 79 (SB 79) applicable.
Key Highlights
- Front building approx. 2,560 RSF with main 1,190 RSF, upper 415 RSF, lower 955 RSF
- Rear office/flex building approx. 1,380 SF
- Extensive exterior renovations recently completed plus brand‑new interior finishes
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$138,606
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.08%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,772,120
$2.8M
Cap Rate 7%
$1,980,086
$2.0M
Cap Rate 9%
$1,540,067
$1.5M
Market Conditions
NOI Build-Up for 3,940 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$220.8K $56.04/SF
− Vacancy
−$36.0K −$9.13/SF
EGI
$184.8K $46.91/SF
− OpEx
−$46.2K −$11.73/SF
NOI
$138.6K $35.18/SF
Area
Santa Clara County, CA
Vacancy
16.30%
Lease Rate
$56.04 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,772,120
Cap Rate 7%
$1,980,086
Cap Rate 9%
$1,540,067
Alternative Uses
Best Use
Office B
$1.98M
$1.73M – $2.31M
NOI $138,606 @ 7.0% cap · market cap 3.08%
Second Best
Industrial
$939.5K
$822.0K – $1.10M
NOI $65,763 @ 7.0% cap · market cap 1.46%
Theoretical Best
Office A
$2.38M
$2.08M – $2.78M
NOI $166,505 @ 7.0% cap · market cap 3.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
6,390
Businesses Nearby
Explore this area
Business Placement
Demographics for 94301, CA
17,299
Population
8,220
Households
2.1
Avg Household Size
44
Median Age
83%
College-Educated
96%
High-School Grad
2.4 sq mi
ZIP Area
7,208
Density / Sq Mi
$235,529
Median Household Income
$136,514
Median Earnings
$3,290
Median Rent
$2,000,001
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-building office property with recently completed exterior renovations, brand-new interiors, and zoning CD-N(P) with legal nonconforming SFR use.
Where is this office building located?
The property is located at 235 Alma St Palo Alto, CA.
What is the asking price?
The asking price for this property is $4,495,000.
What are key features of this property?
This property features: Front building approx. 2,560 RSF with main 1,190 RSF, upper 415 RSF, lower 955 RSF; Rear office/flex building approx. 1,380 SF; Extensive exterior renovations recently completed plus brand‑new interior finishes
