Newark hears economic development update highlighting hotel gains, industrial vacancy and small‑business recovery

Deputy Economic Development Director Angela Sway presented an economic development update and 2025 work plan to the Newark City Council at its first meeting of 2025, outlining recent market data for industrial, hotel and retail sectors and describing programs to support small businesses and workforce connections.

Sway told the council that Newark’s hotel market improved in 2024, with an average daily rate of $141 and an occupancy rate the city estimates at 72%, surpassing several regional peers. She also noted that Measure LL, approved by Newark voters in November 2024, raised the city’s transient occupancy tax from 10% to 14% and is expected to produce roughly $2 million to $2.5 million a year in general‑fund revenue.

The update said 1 million square feet of industrial space was entitled in 2018 and two large projects, Gateway 84 and Morton Commerce Center, were completed in 2022. Sway reported current conditions as: Gateway 84 with a 16% vacancy rate and Morton Commerce Center about 75% occupied; she added that some tenant spaces (including a Meta commissary kitchen) remain unused. Staff resumed an industrial land study that had been paused in 2024 and expects to return to council with preliminary findings by late spring.

Sway described Newark as home to roughly 30 biomedical and bio‑related firms and said the East Bay region hosts “more than 880” life‑science companies. She highlighted Verdigi as a recent entrant to the city’s advanced‑manufacturing cluster and said staff is collecting additional Newark‑specific data.

Retail market indicators in the presentation showed a citywide vacancy of 1.3% (Newpark Mall excluded). Sway noted that vacancy and leasing information comes from CoStar, a commercial real‑estate database that relies on property‑owner and broker reporting. Community Development Director Stephen Turner told council members that CoStar’s Newpark Mall listing is self‑reported and not independently verified, and that the mall’s apparent 100% occupancy on CoStar “does not reflect reality on the site.”

Sway reviewed pandemic‑era supports for small businesses: two grant programs that together distributed about $1,700,000 to 139 businesses (14 of those later closed), and an advising program contracted with Spectrum Small Business Services that completed roughly 230 advising sessions since 2021. She also described the Plan, Prepare, Response and Recovery (PPRR) training launched with the Alameda County Fire Department (ACFD): 84 businesses completed the three modules (fire extinguisher use, hands‑only CPR and abdominal thrusts, and personal emergency planning), training more than 300 individuals.

On outreach, Sway said the economic development team distributes a quarterly business newsletter to nearly 1,500 subscribers, supports the formation of an Old Town Business Association and has worked with the Chamber of Commerce to recruit new leadership. Planned 2025 initiatives include finishing the industrial land study, pursuing a technical assistance panel (TAP) from the Urban Land Institute (ULI) to reimagine Newpark Place and the Ballantyne corridor, hosting mayor/city‑manager business roundtables, developing branding and a business‑recognition program, and a shop‑local campaign.

Council members asked clarifying questions and offered critiques. Vice Mayor Little asked how many hotel rooms the city has; City Manager Mr. Banoon replied, “We do have 1,800 units here in the city of Newark.” Councilmember Grindahl asked about the TAP process; Sway described ULI’s panel approach and said staff must prepare background materials and coordinate site visits. Councilmember Bridal sharply criticized some commercial property owners for failing to maintain and market properties and urged “more teeth” in enforcement; Turner said staff is exploring more proactive code‑enforcement outreach, working with commercial brokers and, if necessary, code amendments to compel improvements.

No formal council action was taken; the presentation was provided as an informational item and staff said they will return with the industrial land study results and follow‑ups on the TAP timing and community‑engagement plans.