Fremont, CA Economic Overview
Fremont is located in Alameda County and is the largest suburb of the San Francisco Bay Area. With a population of nearly 230,000 residents, the city is near to Silicon Valley and often times associated with it. The cities of Fremont, Newark, and Union City form the Tri-City Area. The commercial real estate market in Fremont is driven by the more than 1,200 technology firms in the city, as well as its access to the entire transportation system of the East Bay Area.
Fremont is one of the most ethnically and culturally diverse cities in the entire San Francisco Bay Area. The residents of the city are highly educated and have high- paying jobs in a variety of business sectors, including the clean tech, electric vehicle, biotechnology and life sciences, logistics and warehousing, and healthcare.
With a median household income of over $105,000 and an unemployment rate of just 3.7%, the economy of Fremont attracts a highly educated workforce and a variety of business seeking the innovative, entrepreneurial energy and access to capital that the city generates.
Fremont, CA Commercial Real Estate Market
As the fourth-largest city in the San Francisco Bay Area, Fremont's Silicon Valley location offers business the ideal place to connect with the global economy, while enjoying the high-quality programs and services that the city has to offer. During the work week, the population of Fremont nearly doubles as people from outside the city commute to Fremont for work.
As a result, service business is one of the drivers of the Fremont's commercial real estate market. There are over 350 eateries of all types and cuisines, 18 hotels including a four-star brand, and a wide variety of shopping options such as Pacific Commons, The Hub, Washington West, and the business districts of Irvington and Niles. To meet the increasing demand for high-end retail and service business, new retail and mixed- use projects in Fremont are Pacific Commons’ 'The Block', a 300,000-square- foot pedestrian-oriented retail project; and the 110-acre Downtown project, a mixed-use development planned in the 430-acre City Center.
In recent years Fremont has received over $1 billion in venture capital funding and is ranked #1 in the U.S. for technology start-up business per-capita. With residents of Fremont having a top psychographic profile of affluent, tech-savvy, and highly educated with an urban mentality, it's no surprise that there are a growing number of clean tech companies in Fremont such as Tesla, Imergy, Soraa, Lam Research, Delta, Seagate, Western Digital, and Thermo Fisher Scientific.
With the 76,000 residential units in Fremont, the 9.1 million square feet of retail and the 41.3 million square feet of industrial, warehouse, and office space, this 90-square- mile city still has room to grow. The Warm Springs District in Fremont is one of the city's most ambitious development projects to date. This 850-acre District is the site of BART's second commuter station in Fremont, and the District is positioned to attract high-profile companies and start-ups determined to change the world. Over the next 20 years, the area is expected to create over 20,000 new jobs.
Fremont is also leveraging its existing concentration of large innovative businesses such as Tesla Motors, Boston Scientific, and Seagate, to create the Fremont Innovation District, part of the city's larger strategy to build awareness of the growing cluster of advanced manufacturing clean tech companies in the city.
Unsurprisingly, asking sales prices of all commercial real estate asset classes in Fremont have surged to the double digits over the past year. The asking prices for multifamily property in Fremont has increased by 21%, office property prices have increased over 14%, and asking prices for industrial property in Fremont have increased by over 15%.
Fremont, CA Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Fremont, CA Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Fremont, CA Commercial Inventory Breakdown
Total: 6,683,200 SF
By square footage range:
- 50k to 100k SF: 2,647,375 SF / 39.61% of total office
- 100k to 500k SF: 2,635,825 SF / 39.44% of total office
- > 1M SF: 1,400,000 SF / 20.95% of total office
- Class A: 170,606 SF / 2.55% of total office
- Class B: 5,058,102 SF / 75.68% of total office
- Class C: 54,492 SF / 0.82% of total office
Total: 5,168,584 SF
By square footage range:
- 100k to 500k SF: 4,353,732 SF / 84.23% of total industrial
- 500k to 1M SF: 814,852 SF / 15.77% of total industrial
- Class A: 3,472,633 SF / 67.19% of total industrial
- Class B: 1,026,120 SF / 19.85% of total industrial
Employment in Fremont, CA
Job growth in Fremont has increased by nearly 3.5%, and is expected to keep growing. Over 15% of the labor force in Fremont works in computers & mathematics, while 27% is employed in management, architecture & engineering, and business & financial operations.
The top employers in Fremont are the Fremont Unified School District, Lam Research Corporation, Palo Alto Medical Foundation, Seagate, Synnex, Tesla, Thermo Fisher Scientific, Washington Hospital, and Western Digital.
Education in Fremont, CA
The Fremont Unified School District operates the public school system in the city. The District is responsible for the 29 elementary schools, five middle schools, and five high schools in Fremont. The city also has a number of private and religious schools.
Nearly 50% of the adults residing in Fremont hold a Bachelors, Graduate, or Professional Degree. Major universities within 30 miles of Fremont include Stanford and the University of California Berkeley, along with various community colleges and technical schools.
Commuting Time in Fremont, CA
The average commuting time in Fremont is over 30 minutes, with nearly 3% of the workforce having a super commute of 90 minutes or more. In addition, over 10% of the work-week commuters carpool and 9% use some form of mass public transit.
- The I-880/I- 17 and I-680/280 interstates and State Routes 84, 238, and 262 all access Fremont.
- BART, the Bay Area Rapid Transit system, has two stations in Fremont.
- Rail transport in Fremont is provided by Altamont Commuter Express and the Amtrak Capital Corridor.
- Four shipping ports are within 40 miles of Fremont - Redwood City is 18 miles, away, Oakland is 27 miles, San Francisco is 37 miles, and Richmond is 38 miles.
- The San Jose, Oakland, and San Francisco International Airports are all within 22 miles or less of Fremont.
- Total Population230,964
- Male Population(49.3 %) 113,862
- Female Population(50.7 %) 117,102
- Median Age37.70
- Average Household Income$143,043
- Median Household Income$122,191
- Median Income Under 25$59,896
- Median Income 25-44$135,207
- Median Income 45-64$129,026
- Median Income Over 65$59,597
Residential Rents in Fremont, CA
Due in part to the affluence of the area and the development of mixed-use residential projects in Fremont, less than 38% of the residents in the city rent where they live. Over the past year, residential rents in Fremont have remained relatively stable.
Monthly rents for one-bedroom units in Fremont average at $2,111 per month, while median rents for a three-bedroom dwellings are running at $2,784 per month. The most expensive areas for rentals in Fremont are the East Industrial, Grimmer, and Irvington neighborhoods, while the relatively more affordable areas in Fremont are Glenmoor, Niles, and Parkmont.
Fremont, CA Average Rental Price, August 2019
- $ 2,332/mo
- Studio: $ 1,834
- 1 Bedroom: $ 2,092
- 2 Bedrooms: $ 2,547
Fremont, CA Rent Trends
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