Commercial Real Estate in Solana Beach: Cedros, Highway 101 and the SC, C, LC, OP and LI Zones

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

Solana Beach is a small coastal city, and most of its commercial property sits on a few streets: the Highway 101 corridor, the Cedros Avenue design district near the train station, Lomas Santa Fe Drive and a light industrial pocket off Valley Avenue. Five zoning districts and one specific plan cover nearly all of it, but view, coastal and parking rules often decide what a site can become. Confirm every parcel’s zoning and overlay status with the City of Solana Beach Community Development Department before relying on this page.

Who controls the parcel

Inside city limits, the Solana Beach Municipal Code, Title 17 governs land use. The zoning title sets up commercial and industrial zones in Chapter 17.24 and the Special Commercial zone in Chapter 17.28. Two specific plans, North Rios (Chapter 17.95) and the Highway 101 Corridor (Chapter 17.100), add their own standards on top.

The whole city is in the California Coastal Zone. The city’s shoreline management page explains that the Council adopted the Coastal Commission-modified Land Use Plan in 2013 and approved an amended version in 2014. A Local Implementation Plan is still to come, and full local coastal permitting depends on Coastal Commission certification followed by city adoption. Until then, budget for the Coastal Commission’s involvement in coastal development permits, especially on bluff-top and shoreline sites. Water, sewer and fire service are provided by separate agencies, so confirm capacity and fees for any change of use.

Solana Beach zoning for commercial, industrial and mixed use

The district purposes come from Section 17.24.010 and Section 17.28.010. The FAR and height limits are from the development standards in each chapter.

District	Intended uses	Notes
C – General Commercial	More intensive commercial along major routes, plus tourist-serving uses on Highway 101	FAR 1.2, 35 ft. Residential mixed use up to 20 units/acre
SC – Special Commercial	Pedestrian-scale specialty retail, light industrial, offices and loft apartments on North Cedros, South Cedros and Stevens Avenue	FAR 1.0. 35 ft north of Lomas Santa Fe, 25 ft and two stories south of it
LC – Light Commercial	Low-impact neighborhood-serving commercial	FAR 1.0, 25 ft. Offices capped at 50% of floor area. Residential up to 12 units/acre
OP – Office Professional	Medical, dental, financial and professional offices with accessory retail	FAR 1.0, 45 ft (35 ft west of 101 and north of Lomas Santa Fe)
LI – Light Industrial	Manufacturing, assembly, R&D, warehousing and personal storage without hazardous materials	FAR 2.0, 45 ft (30 ft east of Valley Ave). Office only incidental, up to 25% and 5,000 sq ft

The Highway 101 Corridor Specific Plan’s standards override the C and SC zone rules where they overlap.

Cedros Avenue, Highway 101 and the train station

Cedros Avenue. Chapter 17.28 treats North Cedros, South Cedros and Stevens Avenue as separate districts with their own rules. On the west side of North Cedros, buildings can sit on the front property line. On the east side they need a 5-foot front setback. Next to residential property, rear setbacks grow to 10 feet on North Cedros and 15 feet on South Cedros. Retail stores over 15,000 square feet need a conditional use permit, offices are limited to half of the allowable floor area, and automotive services are confined to the east side of North Cedros. Parking ratios also differ by district: retail on North Cedros needs one space per 450 square feet, and South Cedros restaurants need about one per 133 to 143 square feet. That is often the binding constraint on a restaurant re-tenanting.

Highway 101. Chapter 17.100 adopts the Highway 101 Corridor Specific Plan dated May 2003, and the official copy is held by the City Clerk. Ask for the plan text for any frontage parcel, because its standards apply on top of Title 17.

Train station site. A 2005 CEQA notice describes a proposed transit-oriented project of about 5.67 acres in the Special Commercial zone near Lomas Santa Fe and North Cedros. It included office, retail, a theater, housing and added parking for the NCTD/Amtrak station. The listing shows only the 2005 notice, so check the site’s current entitlement status with the city.

Use permits, views and parking in Solana Beach

Use matrix. Table 17.12.020-A controls specific uses:

Restaurants without bars are permitted in C and SC. Adding a bar needs a conditional use permit in every commercial zone, and restaurants are not allowed in LI.
Bars and nightclubs need a City Council CUP in C and SC and are prohibited in LC, OP and LI. General off-site alcohol sales need a Council CUP in C, SC and LC.
Hotels and motels need a CUP in C and SC only.
Drive-through facilities need a CUP in C and SC and are prohibited elsewhere.
Mini-storage is permitted in LI and needs a CUP in C and SC.

Cannabis is not listed in the matrix. The code leaves unlisted uses to a director’s similar-use determination.

View assessment. Under Chapter 17.63, any new structure or addition taller than 16 feet above existing grade needs a structure development permit. That usually means surveyed story poles and notice to owners within 300 feet. Neighbors then have 30 days to request a hearing before the View Assessment Committee. For a two-story commercial addition, plan time for this step.

Scenic and floodplain overlays. Chapter 17.48 requires a development review permit in the Scenic Area Overlay. Its exemptions are written around visibility from Highway 101 and Lomas Santa Fe Drive. The Floodplain Overlay covers the FEMA 100-year floodplain of the San Dieguito River Valley.

Short-term stays. Chapter 4.47 bans rentals of under seven days in residential zones. That matters for mixed-use buildings with upper-floor units.

Transfer tax, business tax and property tax

The city’s $0.275-per-$500 share is credited against the county tax under San Diego County Section 22.309. The combined standard rate is $0.55 per $500 of taxable value, subject to exemptions and the recorded transaction. Confirm the calculation with escrow.

Due diligence that matters in Solana Beach

Start with our commercial due diligence checklist, then add:

Confirm the zone and whether the Highway 101 Corridor or North Rios plan applies.
On Cedros, identify which SC district applies and check the parking ratio for the intended tenant.
Find the use in Table 17.12.020-A and note whether it needs a director or City Council CUP.
For anything above 16 feet, plan for story poles and possible View Assessment Committee review.
Ask whether a coastal development permit from the Coastal Commission is needed for your work.
Check Scenic Area and Floodplain overlay mapping, especially near the San Dieguito River Valley.
Include the city transfer tax in closing costs.

Questions people ask

Does Solana Beach have its own transfer tax?

The city share is included in the county rate. The combined standard rate is $0.55 per $500 of taxable value, subject to exemptions and the recorded transaction. Confirm the calculation with escrow.

Can I open a bar on Cedros Avenue?

A standalone bar or nightclub needs a City Council conditional use permit in the SC zone. A restaurant with a bar needs a CUP.

Are drive-throughs allowed in Solana Beach?

Only in the C and SC zones, and only with a conditional use permit. They are prohibited in LC, OP and LI.

How tall can a commercial building be on South Cedros?

Up to 25 feet and two stories, with limited architectural projections. North of Lomas Santa Fe, the SC limit is 35 feet.

Why do neighbors get a say on my building’s height?

Under Chapter 17.63, any structure over 16 feet triggers a view assessment. Neighbors can then ask the View Assessment Committee to review it.

Can a commercial building in Solana Beach include apartments?

Yes. C and SC allow residential mixed use at up to 20 units per acre, and LC allows up to 12, generally on upper floors or behind the storefront.

Does Diamond handle commercial property in Solana Beach?

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

Sources & notes

Note: The Code Publishing edition states it is current through Ordinance 537 (November 2023). Confirm later amendments with the City Clerk.

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

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