Bay Area/ San Jose

Palo Alto Showdown Over 90-Foot Office Towers Near 101

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Published on June 09, 2026
Palo Alto Showdown Over 90-Foot Office Towers Near 101Source: Google Street View

A plan to stack nearly three-quarters of a million square feet of new office and research space into 90-foot buildings just off U.S. 101 has Palo Alto residents and leaders squaring off. Yesterday, the Palo Alto City Council pushed a hotly debated draft of the San Antonio Road Area Plan forward, backing a staff-recommended core scenario that would steer major office development to the corridor just south of San Antonio Road near the freeway. The blueprint would focus on commercial uses in a CTI subarea and could allow roughly 750,000 square feet of office and research-and-development space on a portion of the roughly 275-acre planning area. The 6-1 vote split councilmembers and drew fire from residents and some on the dais who argued the city should lean harder into housing, parks, and traffic fixes instead of more Class A office space.

What staff put on the table

City staff pitched a core scenario that clusters commercial development in the CTI subarea, a band along Commercial Street, Transport Street and Industrial Avenue, and pairs it with new public spaces. The concept sketches about 1.5 acres of outdoor space within the CTI area and a 3 to 3.5-acre park in the North Fabian area. Presentation slides also showed tall, office-style buildings and a large new office campus in the CTI node, which planners said could help close financing gaps for parks and infrastructure improvements. Those specifics were part of the presentation and meeting coverage reported by Palo Alto Online.

Big-picture numbers and housing capacity

The San Antonio Road planning area covers roughly 275 acres, and city technical reports describe it as a mix of low-rise industrial, office and service-commercial sites with very little parkland. City draft materials also catalog dozens of opportunity sites that could significantly boost housing capacity in the corridor, and modeled scenarios show a range of roughly 3,800 to 7,400 new homes depending on how tall and dense the city decides to go. The existing conditions analysis and site inventory appear in the draft documents released by the City of Palo Alto, while the potential housing yield was highlighted in coverage by the Palo Alto Daily Post.

Council divided over jobs versus housing

Despite the long-term housing potential, Monday night’s debate kept circling back to jobs. The council voted 6-1 to advance the staff’s core scenario, with Councilmember Keith Reckdahl casting the lone "no" vote. Planning Director Jonathan Lait told the council that concentrating office space in the CTI node could make projects pencil out financially and, in turn, help pay for public benefits like parks and infrastructure. Several councilmembers quizzed staff on how big those parks might actually be and how much effort would be required to make them feel like real gathering places, not just corporate front yards. The back-and-forth and the 6-1 outcome were detailed by Palo Alto Online.

Local reaction: traffic, transit and parks

Neighbors and some councilmembers warned that the San Antonio corridor is already a traffic-heavy transit desert, with narrow sidewalks and limited bus service, and questioned whether it can absorb thousands of new residents without major upgrades. Transportation consultants told the city that adding separated bike lanes, wider sidewalks and new transit stops would be expensive and complicated, and residents argued those fixes should come before the city signs off on a big new block of office growth. Those concerns were laid out in coverage by the Mountain View Voice and other local outlets.

What’s next

For now, advancing the core scenario is an early, directional step in the San Antonio Road Area Plan process. It does not rezone any parcels or approve specific projects. Next up, planners will refine plan alternatives, complete environmental and fiscal studies and continue public outreach before any zoning changes or development proposals move forward.