Commercial Real Estate in Del Mar: Village Zoning, Street-Frontage Rules and Coastal Permits

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

Del Mar is a small city with a small commercial footprint: the village center along Camino del Mar and 15th Street, a beach commercial strip, visitor lodging, and the North Commercial area by the San Dieguito Lagoon near Jimmy Durante Boulevard. Nearly every commercial parcel is coastal, height and floor area are tightly limited, and design review applies throughout, so the controlling rules for a parcel must be confirmed with the City of Del Mar Planning and Community Development Department before you commit.

Who controls the parcel

The city applies Title 30 of the Del Mar Municipal Code, which has its own commercial zones and a stack of coastal overlays for beach, bluff, lagoon and floodplain areas. The big exception is the Del Mar Fairgrounds. The city explains that the Fairgrounds is owned and run by the 22nd District Agricultural Association, a state agency governed by a board appointed by the Governor, and that although about 80% of the property is inside Del Mar, the city has no authority to approve or disapprove activities there. Fairgrounds land carries the FR zone on the map, but commercial users on it deal with the state agency, not city hall.

Coastal permits come from the city under its certified Local Coastal Program for most land, but Chapter 30.75 sends development on tidelands and public trust lands to the Coastal Commission, and city decisions in the appeals area, generally between the sea and the first public road or within 300 feet of the beach, can be appealed to the Commission. Water and wastewater are city utilities billed together, per the city’s water and sewer FAQ, which also notes that commercial users must install and test backflow devices every year.

Del Mar zoning for commercial, mixed use and visitor uses

The village center and North Commercial area

Camino del Mar street frontage. The CC zone’s purpose is to keep the village pedestrian-oriented. Ground-floor space closest to Camino del Mar or 15th Street is reserved for listed retail, restaurant, personal service and community or cultural uses, with each establishment needing at least 51% of its activity in the category. Offices, including medical, real estate and financial, go in non-frontage space. An owner whose frontage space cannot succeed with a listed use, for example because the floor sits 36 inches or more above the sidewalk or is set back 25 feet or more, can ask the City Council for an exception permit. A nonconforming frontage use loses its status after 12 months of discontinuance.

Village limits. CC height is 26 feet, falling to 14 feet above the curb on the west side of Camino del Mar to protect ocean views. Floor area may not exceed 45% of the lot or 2,000 square feet, whichever is greater, and coverage is capped at 60%. Mixed-use projects may add multifamily housing at up to 20 units per acre if they include on-site lower-income units. Owners may also open accessory parking to the public with written authorization from the Director.

North Commercial. NC is the northern gateway south of the river and lagoon, meant for a low-intensity, open-air profile. It allows restaurants, warehouses, print shops and recreation, plus housing at up to 20 units per acre except on parcels next to the river and lagoon. The city’s Chapter 30.92 overlay covers two vacant NC parcels at the corner of Jimmy Durante Boulevard and San Dieguito Drive, about 2.3 acres, for ministerial approval of 20 to 25 units per acre. A 2019 environmental notice shows the city added housing to the PC and NC zones to carry out its Housing Element.

Del Mar-specific rules: late-night alcohol, cannabis, lodging and coastal limits

Late-night alcohol. In CC, NC and BC, selling alcohol for on-site consumption between 11 p.m. and 6 a.m. requires a conditional use permit, and drive-through service is barred in NC and BC.

Cannabis. Chapter 30.85 bans commercial cultivation, processing and distribution, including every form of dispensary, and bars any permit or business license for them.

Short-term rentals. The city’s STR background page says the Council adopted new STR rules on September 23, 2024, pending Coastal Commission certification, and that until they take effect STRs are allowed only in commercial zones and specific plan areas. The adopted Chapter 30.96 would cap permits at 129 citywide, tie new ones to the owner’s primary residence and make them non-transferable on sale.

Coastal ceiling. Under Chapter 30.75, no coastal permit or exemption may be issued for a new structure over 26 feet. Changes in intensity of use and conversions of visitor-serving units to condominium or timeshare ownership are not exempt.

Transfer tax, business tax and property tax

The San Diego County Recorder collects documentary transfer tax at $0.55 per $500 of value, net of existing liens, for the county and cities, and lists no separate Del Mar rate. We found no city transfer tax on official sources; confirm with escrow. A change of ownership generally triggers Proposition 13 reassessment. We did not verify Del Mar’s business license tax structure for this page; ask the city before signing a lease.

Due diligence that matters in Del Mar

• Confirm the zone, overlays and whether the parcel is in the coastal appeals area.
• For CC frontage space, confirm the tenant qualifies as a listed street-frontage use.
• Measure existing floor area and coverage against the zone’s FAR and coverage caps before planning additions.
• Check for any CUP for late-night alcohol sales.
• Confirm design review history and existing coastal permits.
• For Fairgrounds-related leases, deal directly with the 22nd District Agricultural Association.
• Use our commercial due diligence checklist.

Questions people ask

Sources & notes

1. Del Mar Title 30 index
2. DMMC 30.22, Central Commercial
3. DMMC 30.25, Professional Commercial
4. DMMC 30.21, Residential-Commercial
5. DMMC 30.24, North Commercial
6. DMMC 30.23, Beach Commercial
7. DMMC 30.26, Visitor Commercial
8. DMMC 30.75, coastal development permits
9. DMMC 30.85, marijuana prohibition
10. DMMC 30.92, Housing Element overlay
11. DMMC 30.96, short-term rentals and city STR background
12. City of Del Mar, Fairgrounds
13. City of Del Mar, water and sewer FAQ
14. CEQAnet, PC and NC zoning amendment
15. San Diego County Recorder, recording and transfer tax

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

Related: Del Mar real estate guide · Multifamily property in Del Mar · Commercial real estate services