Mid-Peninsula Medical Office Market

Medical Office Space in San Mateo.

San Mateo medical offices cluster downtown around Sutter’s Mills Health Center and near San Mateo Medical Center, with Mills-Peninsula in Burlingame.

San Mateo Healthcare Real Estate Market

San Mateo, with about 104,000 residents (California Department of Finance, 2026), sits at the center of the Peninsula between San Francisco and Silicon Valley. The city has two licensed hospitals. San Mateo Medical Center at 222 West 39th Avenue is the county's public hospital and clinic system, with 167 licensed acute beds. Sutter Health's Mills Health Center at 100 South San Mateo Drive focuses on outpatient care, including surgery, rehabilitation, diagnostics and urgent care. Sutter's full-service Mills-Peninsula Medical Center is next door in Burlingame on Trousdale Drive, which draws many specialists to the San Mateo–Burlingame border. Downtown, medical suites cluster around Mills Health Center along North and South San Mateo Drive and Baldwin Avenue, and Kaiser Permanente runs its San Mateo Medical Offices at 1000 Franklin Parkway. San Mateo suits practices that want a central Peninsula location with access from both Highway 101 and Highway 92.

Profile updated

104,020
Population (2026)
Source
San Mateo Med. Ctr, Mills
Hospitals
S. San Mateo Dr, W. 39th Ave
Main Clusters
Mills-Peninsula (Burlingame)
Nearby

Where Medical Offices Cluster in San Mateo

  • Downtown: S. San Mateo Dr & Baldwin Ave

    Medical suites around Sutter's Mills Health Center (100 S. San Mateo Dr).

  • West 39th Avenue

    Around San Mateo Medical Center (222 W. 39th Ave), the county's public hospital.

  • Franklin Parkway

    Kaiser Permanente San Mateo Medical Offices (1000 Franklin Pkwy).

  • Burlingame border

    Sutter's Mills-Peninsula Medical Center (1501 Trousdale Dr, Burlingame).

Major Health Systems

  • • San Mateo County Health (San Mateo Medical Center)
  • • Sutter Health (Mills Health Center; Mills-Peninsula Medical Center in Burlingame)
  • • Kaiser Permanente San Mateo Medical Offices
Available Properties

Current Listings in San Mateo

As of October 8, 2026

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No active listings in San Mateo at this time.

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San Mateo Case Studies

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No case studies for San Mateo currently available.

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Frequently Asked Questions

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? Is there a hospital in San Mateo?

Yes, two licensed hospitals. San Mateo Medical Center at 222 West 39th Avenue is the county's public hospital and clinic system, with 167 licensed acute beds and an emergency department. Sutter Health's Mills Health Center at 100 South San Mateo Drive is mainly outpatient, with surgery, rehabilitation, diagnostics and urgent care. Sutter's full-service Mills-Peninsula Medical Center is next door in Burlingame.

? Where are medical offices concentrated in San Mateo?

Downtown San Mateo has a cluster around Sutter's Mills Health Center on South San Mateo Drive, with medical suites along North and South San Mateo Drive and Baldwin Avenue. A second hub forms around San Mateo Medical Center on West 39th Avenue, and Kaiser Permanente runs medical offices at 1000 Franklin Parkway. Many specialists also look at Burlingame, near Mills-Peninsula Medical Center.

? Which health systems are active in San Mateo?

Sutter Health runs Mills Health Center downtown and Mills-Peninsula Medical Center in neighboring Burlingame. San Mateo County Health operates San Mateo Medical Center, the county's public hospital, and Kaiser Permanente runs medical offices on Franklin Parkway. Stanford Medicine Children's Health also sees patients at Mills Health Center.

? Should I lease space near a hospital?

Hospital proximity offers advantages including referral relationships, shared patient populations, and perceived prestige. However, hospital-adjacent properties often command premium rents. Consider whether your specialty benefits from hospital proximity (surgeons, specialists) or whether a community location might better serve your patient base (primary care, pediatrics, dentistry).

? What is a "medical corridor" or "healthcare district"?

Medical corridors or healthcare districts are geographic areas with high concentrations of healthcare facilities, often anchored by hospitals. Locating within these areas can provide benefits including patient convenience, referral network proximity, shared parking arrangements, and established wayfinding. The Bay Area has several prominent medical corridors in cities like Palo Alto, San Jose, and San Francisco.

? What is a Tenant Improvement Allowance (TIA)?

A Tenant Improvement Allowance (TIA) consists of funds provided by the landlord to help a tenant customize or upgrade a leased space. For medical practices, negotiating a robust TIA is essential to offset the high costs of clinical build-outs, such as installing sinks in exam rooms, upgrading electrical systems for medical equipment, or adding lead-lined walls for imaging. TIAs are typically expressed as dollars per square foot and may range from $30-$100+ PSF depending on market conditions and lease term.

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