Compaq Buys Into Downtown Palo Alto

PALO ALTO, CA-Compaq Computer’s corporate research laboratory in Palo Alto is going to stay put, now that the company has purchased the 41,000-sf building that houses the lab facility. The price tag is $28 million, and the purchase reflects Compaq’s decision to avoid escalating lease rates on University Avenue.

Compaq has leased the building since 1998, when it merged with Digital Equipment Corporation, the space’s occupant since 1990. “When our option to buy the property came up, we felt it made sense to invest in the building rather than continue to pay rent,” said Compaq spokesman, Brian Garabedian. Rents in the tight University Avenue market currently range from $8 to $16 dollars per sf per month.