By Kate Snyder
The uncertainty in the office market is not stopping property owners from listing assets for sale in the Bay Area. One property listing is for a 71,000 square foot mixed-use building in Palo Alto that has an asking price of $44.5 million, or approximately $626 per square foot, according to a property listing by Premier Properties. The property is currently owned by an entity associated with Norman Schwab, a real estate manager based in Palo Alto. Jon Goldman and Brad Ehikian, co-presidents of Premier Properties, are the brokers for the property.
The property is located at 425 Page Mill Road and features two levels of parking with charging stations, according to the listing information. Along with the parking, the building consists of 16,039 square feet of office space, 4,033 square feet of retail use and 14,411 square feet of residential space that includes 16 apartments. All 16 units are fully-leased while the commercial spaces are in shell condition and ready for build out. On the ground floor, the retail space could support retail uses, financial services or personal services and could be divided into two units. On the second floor, the separate office spaces (6,614 square feet and 9,425 square feet) could be leased together or on their own, according to the listing. The second floor also includes shared restrooms and a shower room.
The site is down the street from Stanford Research Park and within walking distance of the California Avenue business district restaurants, amenities and Caltrain station. Downtown Palo Alto and Stanford University are minutes away.
The Bay Area office market is contending with uncertainty due to a number of factors. A recently released report from CBRE, the San Francisco Peninsula Office Figures, shows that the office market on the San Francisco peninsula experienced a slowdown in the second half of 2022, which was marked by an overall negative net absorption for the region despite some increased leasing activity. Net absorption in the fourth quarter totaled negative 327,747 square feet, bringing the year end total to negative 544,793 square feet, according to the report. The office market also recorded 522,375 square feet of gross leasing volume during that time, which is an 18 percent decline from the year before.
