Commercial Real Estate in Newark: Employment Districts, Old Town and NewPark Place

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Newark is a small city surrounded by Fremont on three sides, with the bay on the fourth. It holds a large share of the southern East Bay’s tech and industrial land, including R&D and biotech campuses, warehouses and heavy industry west of the rail lines. Its retail centers on the NewPark Mall area and the Old Town district along Thornton Avenue. Newark rewrote its zoning code around employment districts rather than old-style industrial zones. Check the current district and any overlay with the city for any parcel.

Who controls the parcel

The City of Newark regulates land inside its limits under Title 17 of the Newark Municipal Code, last updated October 4, 2026. Newark’s addresses rarely cross into another city, but the Fremont boundary runs along several commercial corridors, so confirm which city a parcel is in. Large areas of the city are governed by specific plans and master plans: Bayside Newark (formerly the Dumbarton TOD plan), NewPark Place, Old Town and Planning Areas 3 and 4. Each layers its own standards over the base zoning.

Newark zoning for commercial, industrial and mixed use

District	Intended uses	Key limits
PO Professional Office	Local offices, medical and dental, personal services	35 ft, 50 by CUP; 10,000 sq ft lot
BTP Business and Technology Park	Advanced tech R&D and manufacturing in campus settings, plus hotels and restaurants	100 ft, 45 ft within 300 ft of a residential district; 2-acre lot
LI Limited Industrial	Light manufacturing, warehousing, auto repair; a buffer near housing	100 ft, 35 ft within 100 ft of residential; 15,000 sq ft lot
GI General Industrial	Heavy industry, outdoor storage, truck activity	Up to 500 ft at 1,000+ ft from homes. No retail, standalone office or assembly
NC Neighborhood Commercial	Small neighborhood centers	40 ft; 5,000 sq ft lot
CMU Commercial Mixed Use	Office, retail and housing, ideally housing over shops	60 ft (75 in Old Town); 30–60 units/acre
CR Commercial Retail	Pedestrian-oriented retail	75 ft
CC Community Commercial	Community-serving retail; housing generally not suitable	100 ft
RC Regional Commercial	Large-scale regional retail	250 ft. Housing by CUP, not on the ground floor

All commercial districts allow a zero front setback and require ground floors at least 18 feet tall (16 in Old Town CMU). In CMU, ground-floor commercial must cover at least 15% of the lot.

Employment district use rules

Chapter 17.09 shapes most deals on Newark’s industrial side:

R&D. Permitted in BTP, LI and GI. PO needs a minor use permit.
Warehousing. Indoor warehousing and wholesale/distribution need a conditional use permit in BTP, LI and GI. Newark is stricter here than many neighboring cities.
Outdoor storage. CUP in LI and GI. Chemical, mineral and explosives storage is limited to GI.
Retail. General retail is a minor use in PO and BTP, but in BTP only as a complementary use. It needs a CUP in LI and is barred in GI. Building materials sales are permitted in LI and GI.
Unlisted uses. Uses the table does not list are prohibited unless the director finds them substantially similar to a listed use. Data centers and cannabis do not appear in the table, so a buyer needs a written determination.
Alcohol. In the employment districts, businesses that give 40% or more of floor area, or 75% or more of sales, to alcohol are prohibited.

Old Town, NewPark Place and Bayside Newark

Old Town. The Old Town overlay, Chapter 17.14, carries out the Old Town Specific Plan along Thornton Avenue:

No ground-floor housing on Thornton frontages.
Corner lots with at least 20 feet on Thornton need a retail entrance on Thornton or at the corner.
Long facades need an entry at least every 50 feet.
New driveways across the Thornton sidewalk are generally barred.
Loading and trash must go to alleys or the rear where possible.
In CMU-OT, custom manufacturing and small-scale food and beverage production are allowed with a minor use permit, which suits makers and craft producers.

NewPark Place. The city has approved a specific plan to turn the NewPark Mall area into a mixed-use district. The RC district’s 250-foot height limit and density of up to 120 units per acre reflect that.

Bayside Newark. This 233-acre plan area, formerly Dumbarton TOD, covers former industrial, chemical and salt-production land in western Newark. It is planned as a transit-oriented community around a future Dumbarton rail station. For a former industrial site, check environmental conditions and the plan’s phasing.

Transfer tax, business tax and property tax

Newark has no city transfer tax. The Alameda County Clerk-Recorder lists no conveyance tax for Newark, so only the county’s $0.55 per $500 applies. Under Proposition 13, a sale generally triggers reassessment.

Newark’s business license tax may change soon. The city’s 2026 business license tax page says the Council was considering a November 3, 2026 ballot measure to modernize the tax. The stated goal is to lower costs for most small businesses and have large businesses pay a fair share. The city estimates about $5.4 million a year in revenue, compared with roughly $1.5 million now. Check the result and the new rate schedule before you underwrite.

Due diligence that matters in Newark

Start with our commercial due diligence checklist, then add:

Confirm the base district and any -PD, -FBC, -OT or -BRH overlay on the zoning map.
For warehouse or distribution, confirm an existing CUP or budget time for one, even in GI.
For an unlisted use such as a data center or a cannabis business, get a written use classification from the Community Development Director.
For lots next to housing, check the height step-downs (BTP 300 feet, LI 100 feet).
On Thornton Avenue, check the ground-floor, entrance and driveway rules.
For Bayside Newark sites, review environmental records and specific plan requirements.

Questions people ask

Does Newark have a city transfer tax?

No. The County Clerk-Recorder lists none for Newark. Only the county’s $0.55 per $500 applies.

Do I need a use permit for a warehouse in Newark?

Yes. Indoor warehousing and wholesale or distribution need a conditional use permit in BTP, LI and GI.

Is retail allowed in Newark’s industrial districts?

General retail needs a CUP in LI and is barred in GI. Building materials sales are permitted in both.

How tall can buildings be in GI?

It depends on distance from homes. Heights range from 100 feet within 400 feet of a residential district up to 500 feet at 1,000 feet or more.

What are the Old Town rules on Thornton Avenue?

No ground-floor housing on Thornton frontages, entries at least every 50 feet on long facades and limits on new driveways.

Is Newark changing its business tax?

The Council was considering a November 2026 ballot measure to overhaul the business license tax. Confirm the outcome with the city.

Does Diamond handle commercial property in Newark?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Newark.

Sources & notes

This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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