Commercial Real Estate in Woodland: Downtown DX Zones, Corridor Mixed Use and Industrial Land

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

Woodland, the Yolo County seat, has a historic downtown around Main and Court Streets, older commercial corridors such as East Street, West Main and Kentucky Avenue, regional retail near the Interstate 5 and Highway 113 interchanges, and a large industrial area serving farm processing, distribution and manufacturing. The city rewrote its zoning code in 2024, so district names in older listings, appraisals and leases may no longer match. Confirm zoning and taxes with the City of Woodland before relying on this page.

Who controls the parcel

Inside city limits, Title 17 of the Woodland Municipal Code, adopted by Ordinance 1722 on June 18, 2024 and amended by Ordinance 1743 on October 7, 2025, is the zoning code. Two areas are governed by adopted specific plans under Chapter 17.52: the Spring Lake Specific Plan and the Southeast Area Specific Plan. Inside them, the plan governs use and development, and no permit may be approved that conflicts with it. Farmland outside the city limits is under Yolo County; see our Yolo County commercial guide.

Woodland zoning for commercial, industrial and mixed use

District	Intended uses	Notes
DX-1 Downtown Core	Offices, housing and active uses around Main Street, mainly stacked mixed use	Hotels by conditional use permit; theaters permitted
DX-2 Downtown Civic	Public uses, offices, housing and retail along Court Street	No cinemas
DX-3 Downtown Transitional	Lower-intensity edges around Lincoln Avenue and North Street	No bars or hotels; houses and duplexes permitted
DX-4 Downtown Gateway	Mixed-use node on Main Street between Fifth and East Streets	Live/work and indoor entertainment by zoning administrator permit
CMU-E, CMU-WM, CMU-A	Corridor mixed use on East Street, West Main and the Armfield area	Housing at 20 to 40 units per acre
CMU-K Kentucky	Keeps the farm-industrial corridor working while adding mixed use	Housing only on the south side unless in a specific plan
CMU-F Flex, CMU-G Gateway	North East Street transition to industry; gateway corridor with medical and office	CMU-G housing at 15 to 45 units per acre
CCMU, NMU	Community and neighborhood shopping, groceries, offices	CCMU housing 15 to 30 units per acre
RC Regional Commercial, RC-F Flex	Big-box retail, malls, hotels, auto dealers; RC-F adds light industry and RV sales near entry points	FAR 0.15 to 0.7, up to 1.5 by CUP; 65 ft
IF Industrial Flex	R&D, artisan manufacturing, ag processing, food producers	Buffer between heavy industry and mixed use
IG Industrial General	Light to heavy industry, warehousing, distribution and logistics	Heavy industry by zoning administrator permit
BP Business Park	Office parks, R&D, green tech, supporting hotels and retail	Medical offices by zoning administrator permit

Downtown and the corridors

Downtown. Chapter 17.28 splits downtown into four DX zones. DX-1, the historic core, favors vertical mixed use with active uses and housing above. Full-service restaurants are permitted in DX-1, DX-2 and DX-4. Hotels need a conditional use permit in DX-1, DX-2 and DX-4 and are not allowed in DX-3, which steps down toward surrounding homes.

East Street and other corridors. The corridor mixed-use zones are meant to replace or revitalize older strip and auto-oriented commercial frontages. CMU-E allows light industry alongside retail, office and housing, which suits existing service and contractor uses on East Street. In some mixed-use zones, ground-floor housing facing Main Street or County Road 102 is barred.

Kentucky Avenue. CMU-K is written to protect the working agricultural-industrial character of the corridor, with service and light industrial uses and housing limited to the south side.

Industrial land, auto uses, alcohol and cannabis

Industrial uses. Food and beverage manufacturing is permitted in IF, IG and BP. Logistics and distribution are permitted in IF and IG but not in BP. Indoor warehousing needs a CUP in IF and IG and must sit on the rear half of the lot or be screened. Across all three employment zones, the code prohibits stand-alone pallet storage, freight storage yards, tire and concrete recycling, salvage yards, tow yards and personal storage facilities.

Auto and drive-throughs. In RC and RC-F, new vehicle sales are permitted, while drive-through restaurants need a CUP. Major auto repair is not allowed in RC.

Alcohol. In the regional commercial zones, tasting rooms are permitted, wine bars and microbreweries need a zoning administrator permit, and bars and nightclubs need a CUP.

Cannabis. Cannabis manufacturing, testing and distribution need a CUP in IF, IG and BP. The city also requires a commercial cannabis business permit (Chapter 5.28) and levies a cannabis business tax (Chapter 3.36).

Lodging. Under Chapter 3.12, Woodland charges a 10% transient occupancy tax on stays of 30 days or less. Chapter 3.24 covers visitor attraction district assessments; we did not verify whether any applies to a given hotel.

Transfer tax, business tax and property tax

County tax. Yolo County’s documentary transfer tax is $0.55 per $500 under Section 3-2.04.

City tax. The city’s $0.275-per-$500 share is credited against the county tax under Yolo County Section 3-2.13. The combined standard rate is $0.55 per $500 of taxable value, subject to exemptions and the recorded transaction. Confirm the calculation with escrow.

Prop 13. A change of ownership generally triggers Proposition 13 reassessment. We did not verify Woodland’s general business license tax.

Due diligence that matters in Woodland

Start with our commercial due diligence checklist, then add:

Translate any pre-2024 zoning designation in a listing to the current district on the city zoning map.
Check whether the parcel is in the Spring Lake or Southeast Area specific plan.
For distribution users, confirm the parcel is IF or IG, not BP, and check the warehousing placement rules.
For outdoor storage or yard uses, check the list of prohibited uses before you buy.
Downtown, confirm the DX zone before planning a hotel, bar or ground-floor residential use.
Add the city transfer tax to the county tax in closing costs.

Questions people ask

Does Woodland have a city 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 distribution center in a Woodland business park?

Not in BP, where logistics and distribution are not allowed; they are permitted in IF and IG.

Can I build a hotel downtown?

In DX-1, DX-2 and DX-4 with a conditional use permit; hotels are not allowed in DX-3.

What zoning covers East Street?

Largely CMU-E, a corridor mixed-use zone allowing retail, office, housing and light industry; check the map for each parcel.

Is a tow yard or self-storage allowed in Woodland’s industrial zones?

No. Both are prohibited in IF, IG and BP.

What is the hotel tax in Woodland?

10% of rent for stays of 30 days or less.

Does Diamond handle commercial property in Woodland?

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

Sources & notes

Note: We could not open the rate section on eCode360 and read Chapter 3.16 on GoCodebook. We did not read downtown height and density standards, the specific plan documents, Chapters 3.24, 3.36 or 5.28, or business license rates. Interchange and corridor descriptions are general geography.

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

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