Commercial Real Estate in Hayward: Industrial Zones, Mission Boulevard and Downtown Codes

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

Hayward holds one of the largest industrial areas in the Bay Area, running west of the rail lines toward the shoreline. It also has commercial corridors along Mission Boulevard, Hesperian Boulevard and Tennyson Road, a form-based downtown and land around Hayward Executive Airport. The city has been rewriting its commercial and industrial rules under its Business Friendly Hayward effort, so a summary that is a year old may be out of date. Confirm the current zoning and use table for any parcel with the Planning Division.

Who controls the parcel

The City of Hayward regulates land inside its limits under Chapter 10 of the Municipal Code. Several unincorporated county areas sit next to Hayward: Fairview to the east, and Cherryland, Ashland, San Lorenzo and Hayward Acres to the north and west. Their mailing addresses often read "Hayward," but Alameda County zoning applies there. Land near the airport also falls under the Airport Overlay Zone in Article 6 of the city code. Check both the city/county line and the overlay before you rely on a use.

Hayward zoning for commercial, industrial and mixed use

Section 10-1.125, last amended by Ordinance 26-06 on May 5, 2026, sets up these business districts:

District	Intended uses	Notes
CN Commercial Neighborhood	Everyday goods and services near homes	Draft Business Friendly rules show a 40 ft height
CN-R Neighborhood Commercial-Residential	Neighborhood shops with housing on arterials	Draft rules show a 10,000 sq ft minimum lot
CG General Commercial	Wide range of local and regional commercial	Auto sales only along Mission Boulevard. Cannabis retail by CUP
CO Commercial Office	Offices
CB Central Business	Commercial hub outside downtown: retail, dining, recreation	Hotels allowed outside Airport Overlay Zone 2
SMU Sustainable Mixed Use	Mixed use
IL / IP / IG Industrial	Light industry, industrial park and general industry	See the use rules below
AT districts (AT-AC, AT-C, AT-IP, AT-O, AT-R, AT-RM)	Air Terminal area around Hayward Executive Airport	Airport Overlay Zone limits apply
Mission Boulevard (MB-CN, MB-NN, MB-CC, MB-CS)	Form-based mixed-use corridor	3 to 6 stories by zone
Downtown (Article 28)	Zones under the Downtown Specific Plan	Form-based Development Code

Industrial use rules worth knowing

The city’s posted industrial use table, Section 10-1.1603, reflects amendments through Ordinance 25-02 of January 2025. It sets size thresholds that matter for logistics buyers:

Warehouse and distribution under 150,000 square feet is permitted in IL, IP and IG. At 150,000 square feet or more, it needs a conditional use permit, and so does wholesale of that size.
Data centers are allowed only in IG, with a CUP.
Truck terminals need a CUP and are limited to IG. Major auto repair is permitted in IG.
Breweries are permitted in IP and IG and need an administrative use permit in IL.
Hotels are permitted in IL and IP.
Cannabis retail is limited to IL, with a CUP. Cultivation up to 5,000 square feet and distribution need an administrative permit in all three districts.

Mission Boulevard, Downtown and Business Friendly Hayward

Mission Boulevard. The Mission Boulevard Code is a form-based code. Its regulating plan serves as the zoning map, and most of the corridor is a Priority Development Area near BART.

Zone	Height limit	With Major Site Plan Review
MB-CN north of A Street	3 stories	—
MB-CN south of A Street	4 stories, 57 ft	5 stories, 68 ft
MB-NN	4 stories	5 stories
MB-CC, near BART	5 stories, 68 ft	6 stories, 79 ft

Ground floors need at least 30 feet of depth, 14-foot ceilings for nonresidential space and at least 30% clear glass. Where Commercial Overlay #1 applies, ground-floor apartments are barred. Under Overlay #2, ground-floor housing on the primary frontage needs a CUP.

Downtown. Article 28 is the zoning code for the Downtown Specific Plan, consistent with the Hayward 2040 General Plan. Some Central City parcels in CC-R and CC-C stay under the general zoning code instead.

Business Friendly Hayward. The city’s project page describes draft changes to make it easier to open and expand businesses in commercial and mixed-use areas and to fill vacant storefronts downtown. The drafts include a new accessory commercial unit section and a new limited entertainment permit. The Council held a public hearing on April 21, 2026 on amendments to Articles 1, 2, 24 and 28 and on map revisions. The district list was then amended May 5, 2026. We did not confirm the final adopted text of every use table, so ask Planning for the current version.

Transfer tax, business tax and property tax

The Alameda County Clerk-Recorder charges the county documentary transfer tax of $0.55 per $500 of value. It also collects Hayward’s city conveyance tax of $8.50 per $1,000 of full value. On a $5 million industrial sale, the city tax alone would be $42,500. Parcels in the unincorporated areas next to Hayward pay only the county tax. Under Proposition 13, a change of ownership generally triggers reassessment. City materials note that business license fees can apply, but we did not verify Hayward’s business tax rates.

Due diligence that matters in Hayward

Start with our commercial due diligence checklist, then add:

Confirm the parcel is inside the city and check its district under the May 2026 district list.
For logistics, check whether the building or the planned use reaches 150,000 square feet and would need a CUP.
Near Hayward Executive Airport, check the Airport Overlay Zone, which bars hotels from Zone 2 in CB and CG.
On Mission Boulevard, confirm the zone, the story limits and any commercial overlay ground-floor rules.
Ask for any CUP or administrative permit for cannabis, brewery, auto or entertainment uses.
Model Hayward’s $8.50 per $1,000 city transfer tax.

Questions people ask

What is Hayward’s transfer tax?

The county’s $0.55 per $500, plus Hayward’s city tax of $8.50 per $1,000 of full value.

Do large warehouses need a use permit in Hayward?

Yes. Warehouse and distribution of 150,000 square feet or more needs a conditional use permit in IL, IP and IG. Smaller warehouses are permitted.

Where can a data center go?

Only in the IG General Industrial district, with a conditional use permit.

How tall can buildings be on Mission Boulevard?

From 3 stories north of A Street to 6 stories in the Corridor Center zone near BART, with Major Site Plan Review.

Can I sell cars on any CG property?

No. Auto sales and rental in CG are limited to Mission Boulevard.

What is Business Friendly Hayward?

A city effort to simplify permits for businesses in commercial and mixed-use areas and to fill vacant storefronts. Its code changes went to the City Council in April 2026.

Does Diamond handle commercial property in Hayward?

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

Sources & notes

Note: The commercial district heights and lot sizes above come from the city’s posted Business Friendly draft. Confirm the adopted standards with Planning.

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

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