Fremont is one of the strongest industrial markets in the East Bay. Through the third quarter of 2026, the Fremont/Newark submarket had lower vacancy, more positive absorption, and higher asking rents than the East Bay as a whole, according to Kidder Mathews.
For a small business, those headline numbers only go so far. Most of the demand comes from large, power-hungry manufacturers, and most of the space is built for them. The practical question is whether you can find a footprint, lease term, and setup that fits a smaller operation.
Vacancy and Absorption
Kidder Mathews tracks about 58.6 million Sq Ft of industrial inventory in Fremont/Newark, the largest submarket in its East Bay coverage.
| 3Q 2026 measure | Fremont/Newark | East Bay total |
|---|---|---|
| Direct vacancy | 5.4% | 8.3% |
| Total vacancy | 6.8% | 10.0% |
| Availability | 6.8% | 10.8% |
| 3Q direct net absorption | +487,649 Sq Ft | +667,241 Sq Ft |
| YTD direct net absorption | +862,565 Sq Ft | -135,790 Sq Ft |
| Under construction | 343,152 Sq Ft | 542,547 Sq Ft |
Fremont/Newark accounted for most of the East Bay’s positive absorption in the third quarter. Its year-to-date gain stands out against a regional total that remained negative.
Market Asking Rents
These are third-party asking figures for broad industrial property. They are not quotes for small units and not WareSpace prices.
| 3Q 2026 Kidder Mathews category | Monthly asking rate |
|---|---|
| Fremont/Newark submarket | $1.71/Sq Ft |
| Union City submarket | $1.36/Sq Ft |
| Hayward submarket | $1.39/Sq Ft |
| East Bay market total | $1.60/Sq Ft |
Kidder Mathews reported the East Bay market asking rate down 3.6% year over year. NAI NorCal’s October 2026 report, using CoStar data, put East Bay industrial market asking rent at $17.01/Sq Ft per year, down 1.6%. Across the hills, CBRE reported a record Silicon Valley average direct asking rate of $1.78/Sq Ft per month NNN in Q3 2026.
Fremont sits between a softening East Bay and a tighter Silicon Valley. That helps explain why manufacturers that once looked south are leasing in Fremont.
Who Is Leasing
NAI NorCal reported that East Bay demand is concentrated in modern buildings that support advanced manufacturing, technology, and power-intensive uses. It called access to power an increasingly deciding factor in site selection, and named Fremont and the southern I-880 corridor as the strongest performers. Newly completed buildings at 49000 Milmont Dr and 47100 Lakeview Blvd were fully occupied, including a 267,099 Sq Ft Tesla lease at 49000 Milmont Dr.
The City of Fremont reports more than 900 manufacturing and hardware companies and says advanced manufacturing accounts for one in four jobs. The Warm Springs District alone includes the 5.3 million Sq Ft Tesla Fremont Factory, along with Zoox, Seagate, Western Digital, and Thermo Fisher Scientific.
What this means for small businesses
Big manufacturing leases drive Fremont's numbers. Small suppliers, contractors, and e-commerce sellers compete for the same buildings but need a fraction of the space, which is why small, ready-to-use units are hard to find.
Logistics and Trade
East Bay logistics space is weaker than manufacturing space. NAI NorCal reported 8.9% East Bay logistics vacancy and said some tenants are moving to larger, cheaper distribution space farther inland. Trade volume is mixed: the Port of Oakland handled 188,517 TEUs in September 2026, up 5.4% from a year earlier, but year-to-date volume was down 3.5%.
For small importers and e-commerce sellers, Fremont’s position on I-880 and I-680 between Oakland and San Jose still matters for daily routes. The Fremont shipping access guide covers freeways, the port, and BART.
Choosing Small Warehouse Space in Fremont
- Compare total monthly cost, including NNN and CAM, not only the asking rate. The Fremont warehouse costs guide shows how.
- Match the space type to your work. Read the Fremont flex space vs warehouse guide.
- Pick the district that fits your routes. The Fremont industrial areas guide compares Warm Springs, Bayside, and Ardenwood.
WareSpace in Fremont
WareSpace Fremont is coming soon to 47651 Westinghouse Dr in the Warm Springs District, with a Summer 2027 opening window. The 58,000 Sq Ft building is expected to serve 80+ small businesses and will be WareSpace’s second Bay Area location, after South San Francisco. WareSpace advertises all-inclusive pricing starting at $1,000/mo with 6- or 12-month agreements. Fremont unit sizes and pricing have not been released.
For Peninsula market conditions, read the San Francisco Peninsula industrial market report.
