Commercial Real Estate in Campbell: Downtown CB-MU Rules, Corridors and Industrial Districts

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

Campbell’s commercial property is concentrated in its walkable downtown on Campbell Avenue, along the arterial corridors of Bascom Avenue, Hamilton Avenue, Winchester Boulevard and East Campbell Avenue, and in the city’s office, research and light-industrial districts. In May 2023 the city repealed and replaced its commercial and mixed-use zoning chapters, so older permits and broker summaries may cite districts that no longer exist. Confirm the district with the City of Campbell Community Development Department before relying on this page.

Who controls the parcel

Campbell is an incorporated city in Santa Clara County, and Title 21 of the Campbell Municipal Code is its zoning ordinance. Ordinance 2293, adopted May 2, 2023, enacted the current residential, commercial and mixed-use chapters. Some neighboring addresses with a Campbell mailing address lie in San Jose or in unincorporated County pockets, which the County expects cities to annex over time; see our Santa Clara County commercial guide for how County pockets work. Check the city limit line before relying on Campbell rules.

Campbell zoning for commercial, industrial and mixed use

District	Intended uses	Notes
PO Professional Office	Administrative, professional and research offices near neighborhoods	Caretaker housing not allowed
NC Neighborhood Commercial	Retail, offices and services at neighborhood intersections	Nightclubs prohibited
GC General Commercial	Broad retail and business services on transit and auto corridors	Most auto-related uses prohibited
RD Research and Development	Specialized manufacturing, testing, R&D with offices	Campus settings
LI Light Industrial	Light manufacturing, storage, distribution, warehousing	Heavy hazardous waste, odor or pollutant producers prohibited
CB-MU Central Business Mixed-Use	Downtown ground-floor retail with office or housing above	1.25 FAR; 45 ft
GC/LI	General commercial and light industrial mix	Chapter 21.11
NC-MU, GC-MU, MHD-MU, HD-MU	Commercial with medium to high density housing	Housing encouraged, not required, in GC-MU
CC-MU Commercial-Corridor Mixed-Use	Higher-density housing and mixed use on Bascom, Hamilton, Winchester and parts of Campbell Avenue	Arterial corridors
TO-MU Transit-Oriented Mixed-Use	Very high density near light rail and other high-quality transit	Chapter 21.11
PO-MU	Office and low-medium density housing buffering downtown	Encourages reuse of historic buildings

Downtown Campbell and the CB-MU district

The Central Business Mixed-Use district covers the downtown core, including parts of Campbell Avenue, plus the areas under the Winchester Boulevard and East Campbell Avenue master plans. Ordinance 2306 amended it on April 16, 2024.

Intensity. FAR is 1.25. The Planning Commission or City Council can allow 1.5 for projects with no housing, after findings on traffic, parking and the Downtown Development Plan. Height is 45 feet, and no setbacks are required unless site review calls for them.
Ground floors. Retail and pedestrian-oriented uses belong on the ground floor. Offices are conditional at street level and permitted above, and apartment buildings may use the ground floor only for commercial space, parking and a lobby.
Live music. Ancillary live entertainment is allowed without a use permit if it stays within limits such as 9 a.m. to 11 p.m., four performers and no cover charge.
Barred uses. Payday lenders, tattoo parlors, pawnshops and drive-throughs are among the uses the district bars.
Sidewalk use. Outdoor seating and merchandise display in the public right-of-way need a separate permit.
Historic buildings. Properties on the Historic Resource Inventory can seek FAR exceptions through a zoning exception.

Corridors, office and industrial land

Use permits on the corridors. In NC and GC, liquor sales on or off site, gas stations, drive-in service, and dancing or live entertainment all need a conditional use permit. Quick-service restaurants are conditional in NC and need only an administrative use permit in GC. Full-service restaurants selling alcohol as an ancillary use need an administrative use permit, and nightclubs are conditional in GC and barred in NC.

Groceries. Grocery stores under 20,000 square feet need an administrative use permit in NC and GC, and larger stores need a conditional use permit.

R&D and light industry. RD is aimed at specialized manufacturing, testing and research in campus-like settings, and LI at light manufacturing, storage and distribution with some service commercial. Caretaker housing is conditional in GC, RD and LI.

Housing on commercial corridors. The mixed-use districts tie housing standards to the city’s residential districts, and projects of 3 to 10 units must meet minimum FARs of 1.0 or 1.25, so a small, low-intensity project on a corridor may not be approvable.

Commercial linkage fee. Title 19 includes a commercial linkage fee chapter (Chapter 19.04), so new commercial floor area may owe a housing fee.

Transfer tax, business tax and property tax

Santa Clara County’s Ordinance Code, Division A30, Chapter III, last restated by Ordinance NS-215.6 on September 25, 2007, sets the County documentary transfer tax at $0.55 per $500 of value, excluding liens that remain on the property. It also gives a credit for a conforming city tax set at half the County amount, splitting the money between the city and the County.

Campbell’s Chapter 3.36 sets 27.5 cents per $500 under that same state law and is administered by the County Recorder. Read together, the two codes indicate the city tax is credited within the County’s $0.55 rather than added; confirm the figure on the escrow estimate. A state Attorney General opinion confirms the County rate is the state-authorized $0.55 per $500. Business licenses are in Title 5; we did not verify rates. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Campbell

Start with our commercial due diligence checklist, then add:

Confirm the parcel is in Campbell, not San Jose or a County pocket.
Map the old district name on any permit to the current district under Ordinance 2293.
Downtown, confirm whether the use is allowed on the ground floor and whether the building is historic.
For restaurants and bars, check which use permit level applies and any existing permit conditions.
For new floor area, ask about the commercial linkage fee.
Near light rail, check whether TO-MU or CC-MU standards apply.

Questions people ask

What changed in Campbell zoning in 2023?

Ordinance 2293 repealed and replaced the residential, commercial and mixed-use chapters on May 2, 2023, creating the current districts.

How tall can a downtown Campbell building be?

45 feet in CB-MU, with a 1.25 FAR, or 1.5 for nonresidential projects with findings.

Can an office take a ground-floor space on Campbell Avenue?

Only with a conditional use permit in CB-MU; offices are permitted on upper floors.

Are drive-throughs allowed?

Not in CB-MU. In NC and GC, drive-in service needs a conditional use permit.

Can I add housing to a corridor property?

Yes in the mixed-use districts, such as CC-MU, subject to the linked residential standards and minimum FARs for small projects.

Does Campbell have its own transfer tax?

Chapter 3.36 sets 27.5 cents per $500, and the County code credits a conforming city tax within the County’s $0.55; confirm in escrow.

Does Diamond handle commercial property in Campbell?

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

Sources & notes

Note: We did not read heights and FARs outside CB-MU, the Downtown Development Plan, the Winchester or East Campbell master plans, the linkage fee chapter or business license rates. The County annexation note comes from our Santa Clara County page.

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

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