Commercial Real Estate in Sunnyvale: Moffett Park, Industrial FAR Limits and the Downtown Plan

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

Sunnyvale’s commercial property is shaped by two big planning frameworks and a set of older zoning districts. In the north of the city, the Moffett Park Specific Plan governs a large office and R&D district now planned as a mixed-use innovation area; across the rest of the city, the M-S and M-3 industrial districts control floor area use by use, and the Downtown Specific Plan sets block-by-block rules for downtown. Confirm the district and any specific plan for each parcel with Sunnyvale’s Planning Division before relying on this page.

Who controls the parcel

Sunnyvale is an incorporated city, and Title 19 of the Sunnyvale Municipal Code sets its zoning, with separate chapters for commercial, industrial, office and public facilities districts, combining districts, site-based specific plans, the Downtown Specific Plan and the Moffett Park Specific Plan. Where a specific plan applies, both the code and the plan document govern, and in downtown the plan controls if the two conflict. Moffett Federal Airfield sits at the city’s northwest edge; check airport-related limits with Planning for northern parcels. For unincorporated County rules, see our Santa Clara County commercial guide.

Sunnyvale zoning for commercial, industrial and mixed use

Moffett Park: from office park to innovation district

Chapter 19.29, adopted by Ordinance 3218-23, recasts Moffett Park as an ecological innovation district focused on resilience and climate goals.

• Where housing can go. Multifamily housing needs a special development permit in the Activity Center, Mixed-Use and Residential subdistricts, and those three carry minimum residential densities. Office, Mixed Employment, Hospitality and Public Facilities subdistricts allow no housing.
• Employment subdistricts. Office 1 and 2 are for office; Mixed Employment 1 through 3 mix office, R&D and industrial; Hospitality is for hotels.
• Bonus FAR. Nonresidential projects can exceed base floor area through a development agreement, LEED Platinum certification with a life cycle assessment, open space and community benefit contributions, or transfer of development rights, up to a stated maximum.
• Ecological Combining District. In the plan area’s northwest corner, the combining district bars new commercial, industrial, office and residential uses to protect habitat.

Base FAR and height are in the plan document, not the code chapter, so get those tables from the city before pricing a site.

Industrial floor area and use limits

Sunnyvale’s industrial chapter controls intensity by use through floor area thresholds instead of a single district FAR.

• The 35% threshold. In M-S and M-3, manufacturing and administrative, professional, medical and R&D offices are permitted up to 35% FAR and need a use permit above that. Commercial storage is permitted to 50%, and qualifying hazardous materials storage facilities to 40%, with those facilities held to 15 feet in height.
• Green building bonus. A note to the table says a 5% FAR bonus for green buildings may apply, under standards in City Council Resolution 368-09.
• Retail and restaurants. Retail and service businesses in industrial districts need a miscellaneous plan permit up to 35% FAR and a use permit above. Restaurants serving beer and wine need a miscellaneous plan permit; full bars need a use permit.
• Housing. Homes are barred except caretaker units, and condominium or other common interest projects need a use permit. Payday lenders are prohibited.

Commercial district and downtown rules

• Building size. New commercial buildings over 10,000 square feet need a use permit, and uses generally must operate inside an enclosed building.
• Drive-throughs and autos. Drive-through retail needs a use permit in C-1 through C-3 and is not allowed in C-4. Car washes and vehicle repair are barred in C-1.
• R&D. Research and development offices are not permitted in any commercial district.
• Upper-floor offices. Offices above the ground floor are permitted in all four districts; ground-floor offices under 1,000 square feet are permitted in C-1 to C-3.
• Payday lending. Allowed only in C-2 with a permit, at least 1,000 feet from another lender, with a citywide cap of six.
• Downtown. The Downtown Specific Plan groups blocks into the Commercial Core, North of Washington, Sunnyvale/Carroll, South of Iowa and West of Mathilda areas. Office and retail are generally permitted on mixed-use blocks, while bars, hotels and most housing need a special development permit; auto uses and heavy commercial are barred. Downtown office parking runs two spaces per 1,000 square feet.

Transfer tax, business tax and property tax

The County’s documentary transfer tax is $0.55 per $500 of value, excluding liens that remain, with a credit for a conforming city tax at half the County amount. Sunnyvale’s Chapter 3.08, adopted by Ordinance 1413 in 1967, sets 27.5 cents per $500 on transfers over $100 and is administered by the County Recorder, so the city’s share generally comes out of the County rate; confirm the total in escrow. The city’s business license tax is in Chapter 5.04; we did not verify its rates. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Sunnyvale

Start with our commercial due diligence checklist, then add:

• In M-S or M-3, compare the building’s office or R&D floor area to the 35% FAR threshold and confirm any use permit on file.
• In Moffett Park, get the subdistrict, base FAR and height from the plan document and price any bonus FAR obligations.
• Check whether the parcel touches the Ecological Combining District.
• Downtown, confirm the block’s district and whether the plan document changes the code rule.
• For new commercial buildings over 10,000 square feet, budget for a use permit.
• Confirm business license tax and any hotel tax obligations with the city.

Questions people ask

Sources & notes

1. Sunnyvale Municipal Code (GoCodebook)
2. Chapter 19.20, Commercial Zoning Districts
3. Chapter 19.22, Industrial Zoning Districts
4. Chapter 19.28, Downtown Specific Plan District
5. Chapter 19.29, Moffett Park Specific Plan District
6. Chapter 3.08, Real Property Transfer Tax
7. Santa Clara County Ordinance Code, Division A30, Chapter III

Note: We did not read the Moffett Park or Downtown plan documents, Chapter 19.24 (office districts), Chapter 19.32 (heights and FAR), the site-based specific plans or business tax rates. Moffett airfield limits were not verified.

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

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