Commercial Real Estate in Cloverdale: Downtown, Transit-Oriented and Industrial Zoning

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

Cloverdale is the northernmost city in Sonoma County, and its commercial property runs from the downtown core on Cloverdale Boulevard to the transit-oriented district the code ties to a SMART passenger rail station, neighborhood centers such as Furber Plaza, service commercial strips and industrial land. Because it is an incorporated city, Cloverdale writes its own zoning in Title 18 of its municipal code. Confirm the zoning, plans and fees for a specific parcel with the City of Cloverdale before relying on this page.

Who controls the parcel

Inside city limits, the City of Cloverdale’s Title 18 zoning code controls, along with the city’s own water and sewer rules in Title 13 and development fees in Title 17A. The commercial chapter was adopted in 2015 by Ordinance 698-2015 and amended through Ordinance 754-2024, and the Code Publishing edition notes that it is current through Ordinance 754-2024, passed April 10, 2024. The County’s Urban Service Area layer maps about 3,160 acres for Cloverdale, so land just outside city limits may still be planned for city services. Parcels outside the city follow Sonoma County zoning; see our Sonoma County commercial guide.

Cloverdale zoning for commercial, industrial and mixed use

Downtown: the DTC district and its frontage rules

Retail size. In DTC, retail under 2,500 square feet is permitted outright. Larger stores, or those with more than 50 feet of first-floor frontage, need plot plan review, which keeps downtown storefronts small.

Ground floors. Housing can face the street on the first floor in most of DTC, but not on Cloverdale Boulevard or on First and Second Streets between Commercial Street and Main Street. On those segments, apartments must be above the ground floor or behind a commercial building, and planned unit developments must keep housing secondary to commercial use.

Form. DTC requires a 12-foot minimum first-floor ceiling, a 25-foot minimum height and allows 100% lot coverage, so new buildings read as a continuous main street.

Uses that need a use permit. Bars and non-hosted vacation rentals need a conditional use permit downtown, and smoke shops and some larger general retail face added limits.

The TOD district and the SMART station area

The TOD district exists mainly to put high-density housing near the SMART passenger rail station and to support the downtown retail core, with high-employment public or office uses as a secondary goal. It requires at least two stories, allows 100% coverage and a 3.0 FAR, and asks buildings other than public or hospital uses to look residential and face the street. Commercial projects that would act as a catalyst for downtown can be approved with a use permit. Open space rules call for 150 square feet of common space and 40 square feet of private space per unit.

Corridors and industrial land

G-C. Meant for small-scale retail subordinate to downtown. Retail under 1,500 square feet is permitted; service stations, drive-throughs and self-storage need a use permit or plot plan review.

S-C. The place for contractor shops, auto sales and repair, warehouses and RV parks, each by use permit, and for self-storage and feed and tack stores with plot plan review.

M-1 and M-P. The industrial chapter, adopted by Ordinance 698-2015 with uses updated by Ordinance 710-2016, keeps M-1 away from homes and sensitive habitat to the extent possible. Both districts list wineries among their uses, which suits a city at the edge of the Alexander Valley.

Local taxes and city rules that affect value

• Transient occupancy tax. Chapter 3.44 sets the codified rate at 10% of rent for stays under 30 days, and operators must register with the city within 30 days of opening and post the certificate. Confirm the current rate with the city, since later ballot measures may not appear in the code.
• Other city taxes. The code includes a cannabis business tax (Chapter 3.46), a 2024 transactions and use tax (Chapter 3.50) and business license rules (Chapter 5.04); we did not verify rates.
• Vacant storefronts. Chapter 8.40 regulates vacant commercial property, worth reading before buying an empty building.
• Capacity fees. Title 17A includes water and wastewater capacity fees and fire district and traffic impact fees that apply to new floor area.
• Cannabis and industry. Chapter 18.15 governs cannabis uses, and Chapter 18.20 is a right-to-industry ordinance.

Transfer tax, business tax and property tax

The Sonoma County Recorder charges $0.55 per $500 of value, less assumed loans, and lists Cloverdale among the cities that pay the County rate with no added city tax; only Santa Rosa and Petaluma add one. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Cloverdale

Start with our commercial due diligence checklist, then add:

• Confirm the district and whether the parcel is on one of the downtown segments where ground-floor housing is barred.
• Check retail size and frontage against the DTC and G-C thresholds.
• Price water and wastewater capacity fees for any added floor area or change of use.
• For lodging, confirm TOT registration and the current rate.
• For industrial buyers, confirm whether the use is permitted, needs plot plan review or a use permit in Table 18.06.030-A.
• Check whether the city has adopted ordinances after April 2024 that are not yet in the online code.

Questions people ask

Sources & notes

1. Cloverdale Municipal Code Chapter 18.05, Commercial Zoning Districts
2. Chapter 18.06, Industrial Zoning Districts
3. Chapter 3.44, Transient Occupancy Tax
4. Cloverdale Municipal Code table of contents (GoCodebook)
5. Sonoma County GIS, Urban Service Areas
6. Sonoma County Recorder, Documentary Transfer Tax

Note: We did not read the station area or downtown plan documents referenced in Chapter 18.05, the full use tables, Chapters 3.46, 3.50, 5.04, 8.40, 18.15 or 18.20, or Title 17A fee amounts. The Alexander Valley reference is general geography. The online code may lag ordinances adopted after April 2024.

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

Related: Cloverdale real estate guide · Multifamily property in Cloverdale · Commercial real estate services