Gregorys Coffee at Stanford Shopping Center is in a legal showdown that could cut off a familiar caffeine source for Palo Alto shoppers. The landlord has filed an eviction case over alleged unpaid rent in Santa Clara County court, putting the outpost that opened in April 2025 at risk if the landlord wins possession.
Landlord sues for unpaid rent
SPG Center, LLC filed an unlawful detainer against Gregorys Coffee on June 11, after serving a 72-hour pay-or-quit notice on May 26. Court documents reviewed by reporters state that the landlord claims Gregorys stopped paying rent in February 2025 and made only partial payments in February, May and June of that year. The complaint says the cafe currently owes just under $74,000 and that by November 2025, the lease had allegedly fallen into default for about $350,000. SPG is asking the court to evict the tenant and order payment of the claimed amounts plus attorney fees. Gregorys' attorneys have filed an answer that generally denies the allegations in the lawsuit, according to Palo Alto Online.
Gregorys' local shop and company background
Gregorys Coffee started in Manhattan in 2006 and has grown to roughly 50 locations nationwide, according to the company. The Palo Alto shop at Stanford Shopping Center, which opened in April 2025, was part of that broader push into lifestyle centers, positioned to catch commuters and mall visitors looking for a specialty coffee stop. The company outlines its history and current locations on the Gregorys Coffee website.
Lease details and contractor claims
Documents attached to the landlord's complaint include a lease that lists the annual base rent at about $188,000, roughly $15,666 per month in 2024, and makes the tenant responsible for water, fixed operating costs, real estate taxes and sewage. The filings also reference a mechanic's lien that Lennen Commercial Builders recorded in June 2025 for unpaid work at the Stanford Shopping Center location, and they seek late charges and recovery of legal expenses. Those details appear in the unlawful detainer case file and its exhibits, as reported by Palo Alto Online.
The legal path ahead
An unlawful detainer is the standard legal tool a commercial landlord uses to try to regain possession of a space. If the court rules for the landlord, it can enter judgment, issue a writ of possession and the sheriff may then carry out an eviction. Tenants have relatively short deadlines to respond or seek relief, and the county's self-help information outlines the timelines and steps businesses can rely on to defend, settle or negotiate. Either side could still reach a settlement before any physical lockout or move out occurs, otherwise the case will move forward on the civil calendar at the downtown courthouse. This process is described by the Santa Clara Superior Court.
What this means for Stanford Shopping Center
Stanford Shopping Center, an upscale open-air mall at 660 Stanford Shopping Center in Palo Alto, is owned and managed by Simon and features a mix of national chains and local tenants. A dispute involving a single storefront typically becomes a leasing issue for property management if the space is vacated, and the center's leasing team would be expected to look for a new tenant if the unit opens up. For broader context on the property, see the listing from Simon.
