Commercial Real Estate in National City: Mixed-Use Corridors, Auto Sales Zoning and Port Land

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

National City’s commercial and industrial land runs from the auto dealerships of the Commercial Automotive zone, along the mixed-use corridors and districts, into the industrial belt west of I-5 and the bayfront, where much of the land belongs to the Port of San Diego. Three areas follow their own specific plans, and the Port has its own permitting system, so the first step on any National City deal is confirming which rulebook covers the parcel. This page covers the zoning code as of October 2026.

Who controls the parcel

National City’s Land Use Code is Title 18 of the municipal code, and the city’s zoning map is adopted as part of it. The map sends parcels in three areas to separate documents: the Downtown Specific Plan, the Westside Specific Plan and the Harbor District Specific Area Plan (National City zoning map). Where the Westside plan has its own provisions, it controls over the base code (zoning overview).

On the bayfront, port-controlled land is governed by the Port Master Plan, and the San Diego Unified Port District issues the permits there, not the city. The map also shows a Coastal Zone overlay. Lincoln Acres, which sits inside the planning area but outside city limits, stays under County of San Diego rules until it’s annexed (zoning map).

National City zoning for commercial, industrial and mixed use

District	Intended uses	Notes
CA Commercial Automotive	New car and truck sales, leasing and rentals; used sales and service tied to a new-car dealer	15,000 sq ft min. lot; FAR 1.5; 50 ft / 3 stories
CL Limited Commercial	Neighborhood convenience retail, small service shops, offices, artisans; retail only	FAR 0.6; uses listed in the Westside plan’s Appendix A
CS Service Commercial	Intensive commercial, specialized services, clean wholesale and distribution	FAR 1.5; gas stations, pawn shops, payday lenders and drive-throughs by CUP
CT Tourist Commercial	Lodging, specialty retail, amusement, compatible housing	Auto-oriented visitor uses
MXC-1 / MXC-2 Mixed-Use Corridor	Form-based transit corridors	48 / 75 du/acre; 50 ft / 65 ft
MXD-1 / MXD-2 Mixed-Use District	Neighborhood to "24-hour" activity centers	48 / 75 du/acre; civic space on 3+ acre sites
MXT Mixed-Use Transition	Buffer between houses and corridors	24 du/acre; 45 ft
IL / IM / IH Industrial	Light, medium and heavy industry; warehousing; waterfront-related industry	35 ft (IL), 60 ft (IM, IH); FAR 2

Sources: NCMC Ch. 18.22, Ch. 18.24, Ch. 18.25.

The mixed-use corridors and districts

Chapter 18.24 regulates mostly building form, not use, and it aims for transit-oriented development along the major roads. Street walls must cover 75% to 100% of the frontage. Shopfront ground floors need at least 65% transparent glass, and a parking garage needs active ground-floor uses along the street. A mostly residential mixed-use project must include at least 10% commercial floor area, and a mostly commercial one must include at least 20% residential. Within 50 ft of a residential zone, buildings drop to that zone’s height. MXD sites of three acres or more must provide a publicly accessible green, plaza or playground (NCMC Ch. 18.24).

In the Westside Specific Plan, the MCR-1 and MCR-2 mixed commercial-residential zones apply instead, capped at 24 and 48 units per acre (zoning map), with heights around 50 ft and 65 ft (zoning overview).

Industrial land, the bayfront and auto row

Industrial zones. All three industrial zones permit warehousing and distribution, R&D, light manufacturing and waterfront-related industry. Medium manufacturing is permitted in IM and IH. Trucking terminals are permitted in IH and need a CUP in IM, and heavy manufacturing and scrap metal processing need a CUP in IH. Outdoor storage needs a CUP and screening. Next to a residential zone, industrial buildings must set back 20 ft and match the residential height within 100 ft (NCMC Ch. 18.25).

Bayfront and Port. In November 2022, the Port of San Diego approved the National City Bayfront Projects and Plan Amendments. The package included a marina district land-use plan, up to four hotels, an RV park and cabins, an expanded marina, a rail connector for the Pasha terminal operation, and matching amendments to the city’s local coastal program, Harbor District plan and zoning (CEQAnet SCH 2018121054). A bayfront buyer may need Port, city and Coastal Commission sign-off.

Commercial Automotive. The CA zone is built around franchised new-vehicle dealers. Used-car sales, parts and repair are allowed only when connected to a new-car dealer on adjoining property (NCMC § 18.22.020). In CS, used auto sales need a CUP.

Use permits and operating rules

Most commercial uses must operate inside enclosed buildings. Exceptions include dealerships, nurseries, gas stations and outdoor dining (§ 18.22.050).
Commercial zones allow no more than four games-of-skill machines per business.
Pawn shops, payday lenders and tattoo parlors need a CUP in CS and IL.
Vehicle repair needs at least a 7,500 sq ft lot in CS and the industrial zones.
The code’s objective design standards (Ch. 18.49) and site plan review (§ 18.12.070) apply to many new projects (zoning overview).

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 liens assumed, for both the county and the cities (SDARCC). I did not verify any separate National City transfer tax. File a Preliminary Change of Ownership Report at recording. Under Proposition 13, a sale reassesses the property to its price. Confirm National City’s business license requirements and fees with the city’s finance office before you open or lease.

Due diligence that matters in National City

Find out whether the parcel is under the base code, the Downtown, Westside or Harbor District plan, Port jurisdiction, or the county (Lincoln Acres).
Check for the Coastal Zone overlay and any height restriction overlay on the map.
On mixed-use sites, test the 75% street wall, the transparency rules and the required commercial/residential mix.
For industrial buyers, confirm whether outdoor storage or trucking needs a CUP in that zone, and check for adjacent residential setbacks.
For dealership property, confirm the CA zone’s new-dealer requirement for used sales and service.
Work through our commercial due diligence checklist.

Questions people ask

Who permits projects on the National City bayfront?

On port-controlled land, the San Diego Unified Port District permits projects under the Port Master Plan. The city’s Harbor District plan and the Coastal Zone cover the rest of the waterfront.

Can a used-car lot open in National City?

In CA, used sales need to be connected to a new-vehicle dealer on adjoining property. In CS, used auto sales need a conditional use permit.

How dense can mixed-use projects be?

Up to 75 units per acre in MXC-2 and MXD-2, 48 in MXC-1 and MXD-1, and 24 in MXT.

Where are warehouses allowed?

Warehousing and distribution are permitted in IL, IM and IH, and in the CS service commercial zone.

Does the Westside have different rules?

Yes. The Westside Specific Plan uses its own zones, such as MCR-1, MCR-2 and CL, and controls wherever it has its own provisions.

Is Lincoln Acres in National City?

No. It’s unincorporated, and County of San Diego rules apply until it’s annexed.

Does Diamond handle commercial property in National City?

Contact Matthew Martinez to talk through buying, selling or leasing commercial property in National City.

Sources & notes

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

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