Updated Live-Work
New
For Sale
$3,750,000
235 Alma ST, Palo Alto, CA 94301
Two structures provide a renovated multilevel main building and separate office or flex space in a central Palo Alto setting.
Property Size3,940 SF
Days on Market5
Property Features for 235 Alma ST
General Information
Standard status
Active
Size
3,940 SF
Property subtype
MULTI_FAMILY
Building Details
Building Size
3,940 SF
Year Built
1904
Listing Agency:
Cornish & Carey Commercial
(650) 465-1100
Listed By:
David O'such · License #01033820
(650) 465-1100
Source:
Lynnnorth
Added: Aug 18
Changed: Aug 21
Last Checked: Aug 21 at 5:06AM
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 Cornish & Carey Commercial
Investment Insights
Based on property information with market context.
This live-work property includes two structures totaling approximately 3940 SF on a +/- 5,625 SF parcel. The main building extends across multiple levels and underwent interior and exterior updates in 2025, with modern finishes, professional landscaping, and abundant natural light. A separate structure adds adaptable office or flex space. The property was built in 1904.
Zoned CD-N (P), the property has been used for SFR, with that use continuing as a permitted non-conforming use. Onsite parking and nearby street parking serve occupants and visitors. The property is close to the Palo Alto Caltrain station, and SB 79 may be applicable.
Zoned CD-N (P), the property has been used for SFR, with that use continuing as a permitted non-conforming use. Onsite parking and nearby street parking serve occupants and visitors. The property is close to the Palo Alto Caltrain station, and SB 79 may be applicable.
Key Highlights
- Two structures totaling approximately 3940 SF on a +/- 5,625 SF parcel
- 2025 interior and exterior renovations with modern finishes and professional landscaping
- Separate structure offers adaptable office or flex space
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
3.70%
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 3.70%
Second Best
Mixed Use
$970.9K
$849.6K – $1.13M
NOI $67,965 @ 7.0% cap · market cap 1.81%
Theoretical Best
Office A
$2.38M
$2.08M – $2.78M
NOI $166,505 @ 7.0% cap · market cap 4.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
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?
Live-work space - Two structures provide a renovated multilevel main building and separate office or flex space in a central Palo Alto setting.
Where is this live-work space located?
The property is located at 235 Alma ST Palo Alto, CA.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: Two structures totaling approximately 3940 SF on a +/- 5,625 SF parcel; 2025 interior and exterior renovations with modern finishes and professional landscaping; Separate structure offers adaptable office or flex space
