Commercial Real Estate Market in Palo Alto, CA
Updated monthly: sale, lease, property records, location trend, and more… · Last update: September 30
232 active listings and 3,915 off-market properties in Palo Alto, CA. Commercial property asks $288/SF to buy and $23.34/SF/Yr to lease.
Market Trends
Palo Alto, CA spans 24.5 square miles in Santa Clara County, California. Figures below refresh monthly; last updated 30 September 2026.
Office
Office vacancy in Palo Alto, CA runs 20.8% across the West region in 2025, up from 11% in 2019.
Vacancy Rate % in West region
Retail
Retail vacancy in Palo Alto, CA runs 5.8% across the West region in 2025, down from 7% in 2020.
Vacancy Rate % in West region
Industrial
Industrial vacancy in Palo Alto, CA runs 7.9% across the West region in 2025, up from 3.7% in 2019. Nearly 3.2x the 2022 low of 2.5%.
Vacancy Rate % in West region
Multifamily
Multifamily space in Palo Alto, CA asks $719/SF to buy. Vacancy runs 8.6% across the West region in 2025, up from 7% in 2022.
Average Sale Price $/SF
Listings
Vacancy Rate % in West region
Market overview
Demographics & Economy
Palo Alto, CA has 119,769 residents in 42,713 households. Density runs 4,892 people per square mile. Median household income here is $157,199 and median gross rent $2,740 a month.
119,769
Population
42,713
Households
2.8
Avg Household Size
34
Median Age
70%
College-Educated
92%
High-School Grad
24.5 sq mi
ZIP Area
4,892
Density / Sq Mi
$157,199
Median Household Income
$75,181
Median Earnings
$2,740
Median Rent
$1,929,455
Median Home Value
Tools
Lease vs Buy Breakeven
At $23.34/SF/Yr lease vs $288/SF buy → buying wins if held > 2.2 years.
At a 8.1% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Menlo Park | — | $11.08 |
| Redwood City | — | $14.25 |
| Los Altos | — | $20.61 |
Commercial property in Palo Alto, CA asks $288/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Palo Alto?
Commercial property in Palo Alto, CA asks an average of $288 per square foot. The 4 most recent recorded sales traded at a median of $209/SF, so asking sits 38% above the achieved median. Multifamily carries the highest asking price at $719/SF.
How much does it cost to lease commercial space in Palo Alto?
Asking lease rates in Palo Alto, CA average $23.34 per square foot per year.
Is it cheaper to lease or buy commercial space in Palo Alto?
Buying beats leasing in Palo Alto, CA if the property is held longer than 2.2 years, comparing $23.34/SF/Yr asking rent with $288/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
Where does Realmo's Palo Alto market data come from?
Realmo compiles Palo Alto, CA figures from 6 recent recorded sales, 74 active sale listings, 158 active lease listings, 3,915 tracked off-market properties. Sale and lease figures refresh monthly; vacancy annually. Last updated 30 September 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 74 active for-sale and 158 active for-lease listings in Palo Alto, CA. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Refresh
- The monthly aggregates close at the end of the previous month, so 30 September 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at West region level, retail vacancy is reported at West region level and industrial vacancy is reported at West region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 30 September 2026 · report a data issue
