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udson Pacific Properties has sold a 182,700-square-foot office campus in Palo Alto for $23 million, marking a significant transaction that could reset the local office market. The four-building Foothill Research Center campus at 4001-4009 Miranda Avenue was traded to an undisclosed buyer, with the deal valued at $126 per square foot. This sale comes as Google, the current tenant, nears the end of its lease in February.

    The REIT's CEO and chairman, Victor Coleman, cited a desire to sell the property rather than invest more money into it, given the potential costs associated with re-tenanting the space. The company had earlier reported an estimated value drop for Foothill Research Center, resulting in a $60.2 million impairment loss.

    Google has occupied the offices since 2020 and has a significant presence in Hudson Pacific Properties' portfolio, leasing four properties that generate $52 million in rent per year. Despite this, Coleman declined to disclose the buyer, describing the deal as "a unique transaction" that was beneficial for both parties.

    The sale comes amid a challenging office market in Silicon Valley, where availability has reached a record high of 27.5%. Hudson Pacific Properties reported $200 million in revenue in the third quarter, with over $166 million coming from office rentals and $13.7 million from film studio rentals.