Commercial Real Estate in Union City: Station District, Employment Districts and Industrial Rules

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

Union City’s commercial property falls into three main areas. Retail centers line Alvarado-Niles Road, Decoto Road and Union City Boulevard. Industrial and flex buildings cluster on the west side near I-880. Around the Union City BART station is the Station District, a planned high-density town center. The city rewrote much of its zoning for mixed use and employment, so confirm a parcel’s district and its specific plan with the City of Union City before you commit.

Who controls the parcel

The City of Union City regulates land use under Title 18 of its Municipal Code. The code index shows separate chapters for standard commercial and industrial districts and for several newer districts:

• Marketplace Mixed Use (MMU) and Village Mixed Use (VMU)
• Corridor Mixed Use Commercial (CMU)
• Station East Mixed Use Residential (SEMU-R) and Station Mixed Use Commercial (CSMU)
• Mixed-Use Employment districts (SEE and CMUE)
• The Decoto Industrial Park Study Area (DIPSA)

The Station District districts carry out the Station District Specific Plan, and DIPSA requires consistency with its own specific plan. The city’s industrial land borders Hayward and Fremont, so confirm the parcel is inside Union City limits. See our Alameda County commercial guide for neighboring jurisdictions.

Union City zoning for commercial, industrial and mixed use

In the commercial chapter, any use not listed is not permitted. Conditional uses need either an administrative permit from the Zoning Administrator or a use permit from the Planning Commission.

The Station District

The Station District is Union City’s biggest redevelopment area, built around the BART and intermodal station.

CSMU. The CSMU district is meant to be a mixed-use town center and central business district. It sets a minimum density of 100 units per acre and a maximum of 165. Buildings must be at least three stories and can reach 14 stories or 160 feet, though anything over five stories or 65 feet needs a use permit. Sites need at least 20,000 square feet. Ground-floor retail, service or office uses are required where the specific plan’s Figure 4-6 shows them. Redevelopment cannot cut total commercial space by more than 15%. Residential buildings over 250 units must include at least 300 square feet of shared co-working space. Bars, nightclubs, hotels and R&D flex space need City Council approval.

SEE and CMUE. The two employment districts are designed for jobs, not housing. Neither lists any residential use. Both prohibit distribution, wholesale, warehousing, outdoor storage and repackaging. That is a key point for investors: a site rezoned SEE or CMUE cannot be used as a logistics building. Both need a one-acre minimum site and set minimum FARs, 0.75 in SEE and 0.40 in CMUE, so a low-intensity reuse may not conform. Commercial cannabis is permitted in CMUE but not SEE.

Industrial use rules: warehouse size caps

Union City limits big warehouses more than most of its neighbors. Under Chapter 18.40:

• ML. Warehousing and distribution are permitted in buildings built before August 22, 1996, and in newer buildings up to 25,000 square feet. A newer building over 25,000 square feet needs an administrative use permit. It also has to be a point of sale for taxable goods or support an existing Union City manufacturer.
• MS. Warehousing is permitted up to 10,000 square feet, or 25,000 square feet with the same point-of-sale or manufacturing link.
• MG. The general warehouse row is not allowed, and cold storage up to 100,000 square feet needs a use permit.

The rules favor manufacturing and sales-tax-generating businesses over pure distribution. Check whether a building’s current warehouse tenant is a legal conforming use before buying.

Cannabis, alcohol, tobacco and other permits

• Cannabis retail is permitted in all four commercial districts (CPA, CN, CC and CVR), subject to Chapter 18.117 and Chapter 5.44.
• Tobacco sales are barred within 1,000 feet of sensitive uses, except at service stations. Tobacco stores need a use permit in CC and must be 1,000 feet from another tobacco store.
• Live music. Amplified music at restaurants needs an administrative permit and generally ends by midnight.
• Drive-throughs need a use permit in CN and CC and 20% site landscaping.
• Used cars can be sold in CC only together with new-car sales.

Transfer tax, business tax and property tax

The Alameda County Clerk-Recorder does not list Union City among the cities that charge an added conveyance tax on full value. Union City’s own Chapter 3.08 imposes a documentary tax of $0.275 per $500 under the state transfer tax law, administered by the County Recorder. The county rate is $0.55 per $500. Confirm the total on your escrow estimate. Under Proposition 13, a sale generally resets the assessed value.

The city business tax under Chapter 5.04 is a share of gross receipts, with the first $25,000 exempt but a minimum tax due:

Minimums adjust each year with CPI.

Due diligence that matters in Union City

Start with our commercial due diligence checklist, then add:

• Confirm the district, and whether it is in the Station District Specific Plan or DIPSA.
• For warehouses, check the building’s construction date against the August 22, 1996 cutoff and its square footage against the ML and MS caps.
• In SEE or CMUE, confirm the use is not distribution or warehousing and that the building meets the minimum FAR.
• In CSMU or SEMU-R, check whether Figure 4-6 requires ground-floor commercial.
• Get existing administrative and use permits for alcohol, cannabis, tobacco and drive-throughs.
• Budget for the rental category business tax on a leased building.

Questions people ask

Sources & notes

1. Union City Municipal Code index (GoCodebook)
2. Chapter 18.36, Commercial Districts
3. Chapter 18.37, SEMU-R and Chapter 18.38, CSMU
4. Chapter 18.40, Industrial Districts
5. Chapter 18.41, Mixed-Use Employment Districts
6. Chapter 3.08, Documentary Stamp Tax
7. Chapter 5.04, Business Taxes
8. Alameda County Clerk-Recorder, Real Property Transfer Tax

Note: The online industrial use table is long and was cut off before the trucking and cannabis rows. Confirm those uses with Union City Planning.

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

Related: Union City real estate guide · Multifamily property in Union City · Commercial real estate services