Commercial Real Estate in San Leandro: Industrial Districts, Downtown East 14th and Bay Fair TOD

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

San Leandro is one of the East Bay’s main industrial cities. Its west side holds a large base of manufacturing, food processing, warehouse and distribution buildings between I-880 and the bay. Commercial land runs along East 14th Street through downtown, around the downtown BART station and at Bay Fair, and along the marina. The city’s zoning is detailed by subdistrict, so confirm a parcel’s district and any overlay with the city before you sign.

Who controls the parcel

The City of San Leandro regulates land use through its Zoning Code, which is separate from the Municipal Code. Base districts are in Title Z2, and overlays are in Title Z3. Overlays include Planned Development, Special Review (S), Assembly Use (AU), Landmark, Mobile Home Park and Housing.

Mailing addresses can mislead here. Neighborhoods such as Ashland, San Lorenzo and parts of the area around Bay Fair are unincorporated county land with a "San Leandro" address. There, Alameda County zoning applies and no city transfer tax is due. See our San Lorenzo commercial guide and Alameda County guide.

San Leandro zoning for commercial, industrial and mixed use

District	Intended uses	Notes
IG Industrial General	Protects existing industrial sites for general industry	Trucking terminals and transfer stations by CUP. Cannabis manufacturing and labs by CUP
IL Industrial Limited	Light manufacturing and commercial services, buffered near homes	Big box retail needs a CUP
IP Industrial Park	High-tech and R&D, small warehousing, industrial offices	Distribution must be enclosed
IT Industrial Transition	Emerging tech, artisan production, light manufacturing	Housing up to 40 units per acre by CUP within half a mile of BART
CC Commercial Community	Citywide centers: retail, banking, entertainment, hotels	Bars, liquor stores and cannabis dispensaries by CUP
CN Commercial Neighborhood	Daily needs for nearby residents	Offices and housing above the ground floor
CS Commercial Services	Auto sales and service, building materials, contractors, warehousing	Standalone offices excluded
CR Commercial Recreation	Hotels and restaurants near the marina	Bars by CUP
P Professional Office	Offices, mixed use and apartments, limited retail	Multifamily by CUP
DA-1 to DA-6 Downtown Area	DA-1 retail core on East 14th; DA-2 to DA-4 housing and infill; DA-6 offices near BART	DA-4 requires housing
NA-1, NA-2, SA-1 to SA-3	North Area and East 14th South Area corridors	SA districts have reduced parking
B-TOD Bay Fair	A mixed-use "urban village" at Bay Fair BART	Carries out the Bay Fair TOD Specific Plan

The industrial base: what needs a permit

San Leandro’s industrial use regulations matter for logistics buyers:

Warehouses. Storage and distribution are permitted in IG, IL, IP and IT. A conditional use permit is required to expand an existing building by 10,000 square feet or more, and for any new warehouse building.
Parcel hubs. Parcel processing and shipping is permitted in most industrial districts. Occupying 30,000 square feet or more in a building built after August 15, 2001 needs administrative review, which looks at trips, circulation and noise and can require a traffic study.
Trucking. Terminals and transfer stations need a CUP and are allowed only in IG.
Cannabis. Dispensaries need a CUP in IG, IP and IT. Manufacturing and testing labs need a CUP in IG and IP. All are subject to Chapter 4-33.
Retail. Big box retail is permitted in IG and IP. General retail needs administrative review in most industrial districts but is permitted in IT.

A buyer who plans to replace an older building with a new distribution center should budget time for a CUP and likely CEQA review.

Downtown, East 14th Street and Bay Fair

Downtown districts. DA-1 is the retail core along East 14th Street, with ground-floor retail on key frontages. On parcels facing East 14th or Washington Avenue north of Parrott Street, mixed use is permitted if the ground floor is not residential. Ground-floor housing there needs a CUP. DA-6 covers office clusters near Davis Street, San Leandro Boulevard and the downtown BART station, and its mixed-use projects need office or retail on the ground floor.

Corridors. The North Area districts carry out the North Area Specific Plan. The SA districts carry out the East 14th Street South Area strategy, and SA-3 the Gateway District guidelines.

Bay Fair. The B-TOD district, adopted by Ordinance 2020-012, applies the Bay Fair Transit-Oriented Development Specific Plan around the Bay Fair BART station and mall. It plans for housing, retail, office, entertainment and civic uses together. Subareas and height transition overlays apply, so check the figure for a specific parcel.

Use permits worth knowing

In CC, liquor and beer-and-wine stores need a CUP, must sit at least 1,000 feet from schools, parks, libraries and recreation facilities, and keep 6 a.m. to 10 p.m. hours unless the permit allows more.
Drive-throughs need a CUP in CC, CS, DA-1, SA-1 and SA-3 and are not listed elsewhere.
In CS, service stations, general vehicle repair and vehicle storage need a CUP. Attended car washes and limited repair are permitted.
In the S overlay, otherwise permitted uses may need a CUP unless they are regional retail, new auto sales or a compatible regional market use.

Transfer tax, business tax and property tax

San Leandro levies a city transfer tax. Chapter 2-3 sets a flat $11 per $1,000 of value, with no tiers. The Alameda County Clerk-Recorder collects it on full value alongside the county tax of $0.55 per $500. On a $5 million building, the city tax alone is $55,000. The code exempts some transfers, such as deeds in lieu of foreclosure and qualifying partnership transfers. In a qualifying 1031 exchange completed within 180 days, only one property is taxed. Under Proposition 13, a sale generally triggers reassessment.

The business license fee schedule uses a base fee plus a unit fee. Commercial and industrial rental property pays a $176.13 base plus $27.09 per 1,000 square feet. Warehouse and distribution businesses pay $141.11 per 1,000 square feet. The fees adjust with CPI, so confirm current figures with the city.

Due diligence that matters in San Leandro

Start with our commercial due diligence checklist, then add:

Confirm the parcel is in the city, not unincorporated Ashland or San Lorenzo.
Confirm the exact subdistrict (for example, IG versus IG(AU), or DA-1 versus DA-6) and any S or PD overlay.
For logistics, check the 10,000 square foot expansion trigger and the 30,000 square foot parcel hub review.
For alcohol, cannabis, drive-through or auto uses, get the existing CUP and its conditions.
Price the $11 per $1,000 city transfer tax.
Estimate the square-footage business license fee for a rental building.

Questions people ask

Does San Leandro charge a city transfer tax?

Yes, $11 per $1,000 of value, flat, on top of the county’s $0.55 per $500.

Can I build a new warehouse in San Leandro?

Warehousing is permitted in the industrial districts, but a new building of any size, or an expansion of 10,000 square feet or more, needs a conditional use permit.

Where are trucking terminals allowed?

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

Where can cannabis businesses go?

Dispensaries by CUP in CC, IG, IP and IT. Manufacturing and testing labs by CUP in IG and IP.

Can housing go on industrial land?

In the IT district within half a mile of BART, housing up to 40 units per acre is possible with a CUP.

What is the Bay Fair TOD district?

A zoning district adopted in 2020 to carry out the Bay Fair TOD Specific Plan, creating a mixed-use village around Bay Fair BART.

Does Diamond handle commercial property in San Leandro?

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

Sources & notes

Note: The business license schedule carries an editor’s note about fee reversion. Confirm current rates with the city’s Finance Department.

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

Inquire about a listing or to schedule a meeting

Matthew Martinez

Your inquiry is processed through our iHomefinder service. Review the form’s contact choices before submitting. Privacy Policy · Terms of Use.