Multi-System Medical Office Market

Medical Office Space in Sunnyvale.

Sunnyvale medical offices cluster on Old San Francisco Road, East Arques Avenue and West El Camino Real, where a rehab hospital is under construction.

Sunnyvale Healthcare Real Estate Market

Sunnyvale has 161,884 residents (California Department of Finance, 2026) and no general acute-care hospital of its own. The nearest full-service hospitals are El Camino Health's Mountain View hospital at 2500 Grant Road and Kaiser Permanente Santa Clara Medical Center at 700 Lawrence Expressway in neighboring Santa Clara. Medical offices in Sunnyvale are spread across several health systems. Sutter Health's Palo Alto Medical Foundation runs its Sunnyvale Center on Old San Francisco Road, where 301 Old San Francisco Road offers primary care plus OB/GYN, oncology, radiation oncology, lab and radiology. Kaiser Permanente's Santa Clara Arques Medical Office at 1263 E. Arques Avenue houses allergy, geriatric medicine, pain management, physical medicine and reproductive health departments. El Camino Health is expanding in the city. In April 2025 it broke ground on a four-story, 52-bed inpatient rehabilitation hospital at 1027-1035 West El Camino Real near the Mountain View border, expected to open in spring 2027. In April 2026 it paid $19.3 million for a two-story office building at 595 Lawrence Expressway, at East Duane Avenue, and has not announced plans for it. Practices choosing a Sunnyvale location usually weigh access to El Camino Health in Mountain View, Kaiser's Lawrence Expressway campus and Sutter's Old San Francisco Road offices.

Profile updated

161,884
Population (2026)
Source
None in city
Acute-Care Hospital
52-bed rehab hospital (2027)
Under Construction
Old SF Rd, E. Arques Ave
Main Clusters

Where Medical Offices Cluster in Sunnyvale

  • Old San Francisco Road

    Sutter Health's Palo Alto Medical Foundation Sunnyvale Center, where 301 Old San Francisco Rd offers primary care, OB/GYN, oncology, radiation oncology, lab and radiology.

  • East Arques Avenue

    Kaiser Permanente's Santa Clara Arques Medical Office at 1263 E. Arques Ave, a specialty building tied to Kaiser's Santa Clara Medical Center.

  • West El Camino Real

    El Camino Health's 52-bed inpatient rehabilitation hospital under construction at 1027-1035 W. El Camino Real near the Mountain View border, opening expected spring 2027.

  • Lawrence Expressway & East Duane Avenue

    El Camino Health bought the two-story office building at 595 Lawrence Expressway for $19.3 million in April 2026; plans have not been announced.

Major Health Systems

  • • El Camino Health (rehabilitation hospital under construction)
  • • Sutter Health / Palo Alto Medical Foundation (Sunnyvale Center)
  • • Kaiser Permanente Santa Clara (Arques Medical Office)

Frequently Asked Questions

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? Is there a hospital in Sunnyvale?

Sunnyvale does not have a general acute-care hospital. The nearest full-service hospitals are El Camino Health's Mountain View hospital at 2500 Grant Road and Kaiser Permanente Santa Clara Medical Center at 700 Lawrence Expressway in Santa Clara. That will partly change in 2027: El Camino Health is building a 52-bed inpatient rehabilitation hospital at 1027-1035 West El Camino Real, expected to open in spring 2027, for patients recovering from strokes, brain and spinal cord injuries and other serious conditions.

? Where are the medical offices in Sunnyvale?

Sunnyvale's medical offices are split among health systems rather than concentrated around one hospital. Sutter Health's Palo Alto Medical Foundation runs its Sunnyvale Center on Old San Francisco Road, where 301 Old San Francisco Road offers primary care, OB/GYN, oncology, lab and radiology. Kaiser Permanente operates the Santa Clara Arques Medical Office at 1263 E. Arques Avenue. El Camino Health's new rehabilitation hospital is rising on West El Camino Real, and the system also owns an office building at 595 Lawrence Expressway.

? What is El Camino Health building or buying in Sunnyvale?

El Camino Health broke ground in April 2025 on a four-story, 52-bed inpatient rehabilitation hospital at 1027-1035 West El Camino Real, near the Mountain View border. It is expected to open in spring 2027 with stroke, brain injury, spinal cord injury and amputation rehabilitation programs. In April 2026, El Camino Health also paid $19.3 million for a two-story office building at 595 Lawrence Expressway, at the corner of East Duane Avenue, and has not released plans for that property.

? What factors should medical practices consider when choosing a location?

Key site selection factors include: proximity to referral sources and hospitals; patient demographics and population density; visibility and accessibility (parking ratios, ADA compliance); competitor proximity; zoning and permitted uses; co-tenancy with complementary healthcare providers; and ease of access for patients including public transit options in urban markets.

? 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 factors influence medical office rents in California?

Medical office rents vary with location (proximity to hospitals and medical corridors), building quality and age, the condition of the space (second-generation medical space with existing exam rooms and plumbing typically leases for more than shell space), lease structure (NNN versus full-service gross), the tenant improvement allowance offered, parking availability, and local supply. Rents also tend to be higher in supply-constrained markets such as Palo Alto and San Francisco than in suburban markets.

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