Commercial Real Estate in Moss Beach: Coastal Zoning, Seal Cove Hazards and Airport Rules

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

Moss Beach is an unincorporated coastal community between Montara and Half Moon Bay Airport, and its commercial property is limited to a handful of neighborhood business parcels, restaurants and visitor uses near Highway 1, and agricultural land at the edges. Two things make Moss Beach due diligence different from its neighbors: the active Seal Cove landslide area on the bluffs and the airport to the south. San Mateo County regulates every parcel here, so confirm the zoning, coastal permits and hazard status with County Planning and Building before relying on this page.

Who controls the parcel

Moss Beach has no city government. San Mateo County Planning and Building applies Title 8 of the County code together with the County’s Local Coastal Program, first approved in late 1980 and administered by the County since April 1981. Policy 1.4 of the LCP policies classifies Moss Beach as one of the Midcoast’s urban areas, where the LCP directs infill development, and Policy 1.5 brings the Montara-Moss Beach-El Granada Community Plan into the land use plan.

Water, sewer and the garbage franchise come from the Montara Water and Sanitary District (MWSD), whose board members must live in the Montara or Moss Beach area. The Coastal Commission hears appeals on some coastal permits and must approve LCP amendments. A Moss Beach business buyer usually deals with the County, MWSD and, for anything near the bluffs, the County’s building inspectors and geologists.

Moss Beach zoning for commercial, industrial and mixed use

The County’s district list is in Chapter 8.08. The table covers the districts most relevant to business use on the Midcoast; the County zoning map decides which applies to a parcel.

District	Intended uses	Notes
C-1 Neighborhood Business	Local shops, restaurants, bars, offices, banks and services	Hotels, motor courts and residences by use permit. Housing above the first floor only in the Midcoast LCP Update area
PAD Planned Agricultural	Agriculture and closely related commerce	Seasonal roadstands by right. Permanent roadstands, processing and storage by permit. Commercial recreation and wineries on non-prime land by permit
S-17 Midcoast combining	Single-family neighborhoods	Residential only. Includes the Moss Beach airport noise and avigation rule
CD Coastal Development (combining)	Coastal Act review	Listed in Section 8.08.020
GH Geologic Hazards (combining)	Hazard-area review	A Title 8 combining district; we did not confirm where it is mapped in Moss Beach

The C-1 rules on a Moss Beach business parcel

Permitted outright. The C-1 chapter allows roughly 33 retail and service categories without a use permit. Among them are restaurants, bars, bakeries, offices, banks, barber and beauty shops, theaters, pet sales and grooming, and gas stations limited to sales and minor service.

Use permit. Hotels and motor courts, clinics, mortuaries, outdoor advertising, retail dry cleaning, garden supply, veterinary hospitals and used merchandise or vehicle sales all need a use permit. So does any residential use. Bed-and-breakfast inns appear in the chapter only as a use outside the Coastal Zone, so confirm with the County before planning one here.

Apartments over shops. In the Midcoast LCP Update project area, homes in a C-1 building must be above the first floor and may not be larger than the commercial space, unless the extra floor area is very low, low or moderate income housing under a County contract. That rule came in with Ordinance 4556 in May 2011.

Site and drainage. Next to residential land, a C-1 building needs a 3-foot side yard and a 6-foot rear yard. Low impervious surfaces are held to 10% of the parcel without a drainage plan exception, and winter grading between October 15 and April 15 needs erosion controls.

Seal Cove, the airport and coastal permits

Seal Cove. The County’s Seal Cove page, last updated January 14, 2026, describes accelerating landslide movement in an area where geotechnical studies have documented hazards for more than fifty years.

Road closures. San Lucas Avenue at Ocean Boulevard has been closed since March 2023, and Del Mar Avenue since January 2025.
Monitoring. Pavement cracks on La Grande Avenue west of San Ramon Avenue are being tracked in marked zones.
Inspections. Building inspectors are visually inspecting homes and may issue yellow or red tags, and MWSD has repaired water and sewer line damage.
New study. An updated Seal Cove Geologic Study was released for public review on December 15, 2025, replacing work from the 1980s. It is meant to guide future LCP policies for development there.

Those future rules were not adopted when this page was reviewed.

Half Moon Bay Airport. The S-17 chapter requires new dwellings north of the airport, in Moss Beach, to provide an acoustical analysis, follow its recommendations and grant the County an avigation easement. Mixed-use projects with apartments should plan for the same requirement.

Coastal permits. The LCP requires a coastal development permit or an exemption for development in the Coastal Zone, in addition to zoning, building and health approvals.

The Midcoast housing cap. Any dwelling in a commercial project counts against the 40-units-a-year cap in LCP Policy 1.23. The County’s cap and waitlist page, updated October 27, 2026, reports 102 units permitted in 2025 and only 18 available for 2026 and 2027. It says no new residential building permit applications will be accepted until January 1, 2028, or until an LCP amendment providing relief is approved. A Coastal Commission hearing on amendment LCP-2-SMC-26-0048-1, which would change how the cap is calculated, is scheduled for November 4, 2026; its outcome was not known at review.

Transfer tax, business tax and property tax

The County Assessor-County Clerk-Recorder collects documentary transfer tax at recording at 55 cents per $500, under County Ordinance 2.93. Moss Beach is unincorporated, so there is no city transfer tax on top. Lodging and short-term rental operators register for transient occupancy tax with the County’s contractor. Expect Proposition 13 reassessment on a change of ownership. We did not verify a County business license tax.

Due diligence that matters in Moss Beach

Start with our commercial due diligence checklist, then add:

Check whether the parcel is in or near the Seal Cove area, and ask the County about any inspection tag, closed road or study finding that affects access.
Commission a geotechnical review for bluff-top or slope parcels, whatever the current zoning says.
For any dwelling in the project, plan for the airport acoustical analysis and avigation easement.
Confirm MWSD water and sewer connections and any line repairs on the property.
Pull the coastal development permit and use permit behind the current business.
Treat any new residential component as unbuildable until the Midcoast cap allows a permit.

Questions people ask

Is Seal Cove still moving?

The County reported accelerating movement in 2025 and kept San Lucas and Del Mar Avenues closed. Check its Seal Cove page for current conditions.

Does the airport affect Moss Beach property?

Yes, for housing. New dwellings north of Half Moon Bay Airport need an acoustical analysis and an avigation easement to the County.

Who regulates zoning in Moss Beach?

San Mateo County, under Title 8 and its Local Coastal Program. There is no city.

Can a Moss Beach restaurant serve alcohol?

Bars and restaurants are permitted uses in C-1; a liquor license from the state is a separate step we did not review.

Can I add apartments to a commercial building in Moss Beach?

In C-1, by use permit, above the ground floor and no larger than the commercial area, and only as Midcoast cap permits allow.

What is the transfer tax on a Moss Beach sale?

The County documentary transfer tax of 55 cents per $500. No city tax applies.

Does Diamond handle commercial property in Moss Beach?

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

Sources & notes

Note: We did not confirm parcel-level zoning in Moss Beach, where the GH district is mapped, or the Coastal Commission’s November 4, 2026 decision.

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

Inquire about a listing or to schedule a meeting

Matthew Martinez

Your inquiry is processed through our iHomefinder service. Review the form’s contact choices before submitting. Privacy Policy · Terms of Use.