Commercial Real Estate in West Sacramento: Riverfront Plans, Port Industrial Land and Corridor Zoning

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

West Sacramento’s commercial land ranges from riverfront mixed-use districts facing downtown Sacramento to industrial land around the Port of West Sacramento and the ship channel, with retail and service strips along West Capitol Avenue and Harbor Boulevard. Two adopted specific plans govern the riverfront Bridge and Washington districts, so the base zoning code is only part of the story. Confirm zoning, plan standards and taxes with the City of West Sacramento before relying on this page.

Who controls the parcel

Everything inside city limits is under Title 17 of the West Sacramento Municipal Code, the zoning code adopted by Ordinance 19-1. Under Chapter 17.15, an adopted specific plan governs all use and development within its boundaries; the rest of Title 17 fills gaps only where the plan is silent, and uses the plan neither lists nor resembles are prohibited. Overlay zones can add rules: the Grand Gateway overlay (Chapter 17.16), the Southport Framework Plan overlay (Chapter 17.17) and planned development overlays (Chapter 17.18). Port-owned land and levee rights of way may involve other public agencies. Farmland outside the city, such as around Clarksburg, is under Yolo County; see our Yolo County commercial guide.

West Sacramento zoning for commercial, industrial and mixed use

District	Intended uses	Notes
CBD Central Business District	The original commercial center as a civic and cultural core	Residential at 20 to 60 units per acre
C Commercial	Local retail and services with apartments above the ground floor	5.1 to 18 units per acre; minor auto repair permitted
CH Commercial-Highway	Highway-dependent retail, services, amusement and lodging	No multi-unit housing; major auto repair permitted
MU-NC Mixed Use Neighborhood Commercial	Walkable daily retail and office with medium-density housing	12 to 60 units per acre
MU-C Mixed-Use Corridor	Retail and office with higher-density housing on corridors such as West Capitol Avenue	20 to 60 units per acre
WF Waterfront	Marinas, visitor retail, hotels and high-intensity mixed use on the river	40 to 120 units per acre
B-P Business Park	Planned office, R&D, hotel, retail and light industrial campuses	Hospitals by minor use permit
M-L Limited Industrial	Research, technical manufacturing, offices, industrial parks, indoor warehouses	Hotels by conditional use permit
M-1 Light Industrial	Light industry, custom manufacturing, construction yards, building materials	Protected from incompatible uses
M-2 Heavy Industrial	Manufacturing, processing, fueling, large vehicle service	Salvage and outdoor storage by conditional use permit
M-3 Water-Related Industrial	Docking, bulk cargo handling and trucking tied to the waterway	Salvage by conditional use permit
Specific plan zones	Bridge District and Washington Specific Plans	Plan controls uses and standards

Bars and nightclubs need a minor use permit in CBD, MU and WF zones and a conditional use permit in C; they are not allowed in CH.

The riverfront: Bridge District and Washington

Bridge District. The city’s Bridge District Specific Plan page says the plan began in 1993 as the Triangle Plan and was substantially updated in 2009, with the goal of turning a former industrial area into a waterfront-oriented urban district. A combined update of the General Plan Mobility Element and the Bridge District plan’s planned transportation facilities was the subject of a supplemental environmental review, and CEQAnet shows a Notice of Determination received January 18, 2024. Read the plan as amended for street, height and use standards before planning a project.

Washington district. The Washington Specific Plan dates from 1996 and covers the older Washington neighborhood along the river, including a mixed-use node at Third and C Streets. The city is preparing a comprehensive update, with a public review draft and initial study scheduled for April 2025, building on the 2015 "Washington Realized" sustainable community strategy. We did not confirm whether the update has been adopted, so check which version governs a parcel.

Liberty. Chapter 17.15 also reserves a place for a proposed Liberty Specific Plan; it was listed as a placeholder, not an adopted plan, in October 2026.

Port industry, cannabis and lodging rules

Industrial land. M-3 is the only zone whose purpose is tied to the water: docking, bulk cargo and trucking. M-2 allows uses with objectionable conditions under congestion and neighborhood controls. Emergency shelters are permitted in M-1, which a buyer next to such a site should know.

Cannabis retail. Chapter 17.12, adopted by Ordinance 23-1 on March 15, 2023, sets storefront retail cannabis overlay zones. On West Capitol Avenue, storefronts must be at least 500 feet apart, and Chapter 5.28 adds business standards. Cannabis microbusinesses in B-P need a development agreement.

Lodging. Hotels are permitted in B-P and need a conditional use permit in M-L. Under Chapter 3.28, the city charges a 12% transient occupancy tax on stays of 30 days or less.

Transfer tax, business tax and property tax

County tax. Yolo County charges documentary transfer tax of $0.55 per $500 of value under Section 3-2.04.

City tax. West Sacramento’s real property transfer tax law, Ordinance 87-8, adds 27.5 cents per $500. It is codified as Chapter 3.20. Confirm the combined total and who pays on your escrow estimate.

Business license and Prop 13. Business licenses are in Chapter 5.04; we did not verify rates. A sale generally triggers Proposition 13 reassessment, and many newer areas also carry special district assessments, so request the tax bill.

Due diligence that matters in West Sacramento

Start with our commercial due diligence checklist, then add:

Check whether the parcel is in the Bridge District or Washington plan area, and which version of the plan applies.
Look for Grand Gateway, Southport Framework or PD overlays on the zoning map.
For waterfront or levee-adjacent sites, confirm flood zone and levee setback limits with the city and the reclamation district.
For industrial users, match the use to M-L, M-1, M-2 or M-3 rather than assuming any industrial zone will do.
For cannabis retail, confirm the overlay map and the 500-foot spacing on West Capitol Avenue.
Add the city transfer tax and any special assessments to closing and holding costs.

Questions people ask

Does West Sacramento have a city transfer tax?

Yes, 27.5 cents per $500 under Ordinance 87-8, on top of Yolo County’s $0.55 per $500.

What governs development in the Bridge District?

The Bridge District Specific Plan, which controls use and development inside its boundaries under Chapter 17.15.

Is the Washington Specific Plan being replaced?

The city has been preparing a comprehensive update to the 1996 plan; confirm its adoption status before relying on either version.

Where can heavy or port-related industry locate?

M-2 for heavy industry and M-3 for water-related industry such as docking and bulk cargo.

Can I open a bar in the Waterfront zone?

Bars and nightclubs need a minor use permit in the WF zone.

What is the hotel tax in West Sacramento?

12% of rent for stays of 30 days or less.

Does Diamond handle commercial property in West Sacramento?

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

Sources & notes

Note: We did not read the Bridge District or Washington plan documents, height and FAR standards in Chapters 17.09 and 17.10, the overlay chapters, Chapter 5.28 or business license rates. Port and reclamation district roles are general notes, not verified for any parcel.

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

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