Commercial Real Estate in Albany: Solano Avenue, San Pablo Avenue and Waterfront Zoning

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

Albany is a small, built-out city, and nearly all of its commercial property sits on two corridors: Solano Avenue, a walkable shopping street shared with Berkeley, and San Pablo Avenue, a wider boulevard rezoned in 2022 for taller mixed-use buildings. A pocket of light industrial and service land sits near the Eastshore Freeway, and the former Golden Gate Fields racetrack lands lie on the waterfront. The City of Albany zones every parcel, but waterfront changes need a public vote.

Who controls the parcel

The City of Albany regulates all land within its limits under Chapter 20 of the Municipal Code. Two things complicate that. First, Solano Avenue and San Pablo Avenue both cross into Berkeley and El Cerrito, so a "Solano Avenue" address may not be in Albany at all. Second, under Measure C, a 1990 citizens’ initiative described on the city’s Golden Gate Fields Transition page, Albany voters must approve changes to waterfront General Plan designations, the Waterfront Master Plan, waterfront zoning or a waterfront development agreement.

Albany zoning for commercial, industrial and mixed use

The districts and their purposes are in Section 20.12; site standards are in Section 20.24.020.

Under Note 2 of the use table, a minor use permit covers up to 2,500 square feet of nonresidential space or six homes (more for some starred uses). Anything larger needs a major use permit before the Planning and Zoning Commission.

Solano Avenue and the San Pablo Avenue Specific Plan

Solano Avenue. The SC district keeps the street’s ground floors active. Individual apartments cannot occupy Solano Avenue ground-floor frontage, though shared lobbies can. Parking for residential uses may not sit on that frontage, and storefronts must keep transparent windows. Daylight plane rules protect homes across certain side streets. Drive-through restaurants are not permitted in SC.

San Pablo Avenue. Ordinance 2022-03 put the San Pablo Avenue Specific Plan into the zoning code. It removed the maximum residential density in the plan area and set zero minimum residential parking, with unbundled parking and a transportation demand management plan. It allowed 4.0 to 4.5 FAR and 85 feet in the northern node in exchange for community benefits. Ground-floor frontage on San Pablo is reserved for commercial use, except for some 100% affordable projects. Upper stories step back above the third floor next to residential zones. The ordinance also permits ghost kitchens in SPC, subject to window transparency rules. A University Village overlay requires mixed use with housing on the University Village parcels facing San Pablo. Design review follows the San Pablo Avenue Design Guidelines and Objective Design Standards.

Albany-specific rules: alcohol, cannabis, drive-throughs and the waterfront

• Bars. A use permit is required in SC, SPC, CMX and WF. The use table notes that a supplemental business license may be needed where alcohol is consumed, and Section 20.20.070.B.1 sets alcohol permit requirements.
• Drive-throughs. Use permit in SPC and CMX; not permitted in SC.
• Cannabis. Albany’s use table lists medical marijuana dispensaries as not permitted in any district shown. Confirm current city rules before pursuing any cannabis use.
• Golden Gate Fields. Horse racing ended in June 2024. The site is zoned WF, which permits uses such as parks, marinas, restaurants and commercial recreation. The East Bay Regional Park District and Trust for Public Land announced plans for a future waterfront park in 2026. The city notes the transition is driven by the owners and is subject to Measure C and CEQA.

Transfer tax, business tax and property tax

The Alameda County Clerk-Recorder collects the county documentary transfer tax of $0.55 per $500 of consideration. It also collects Albany’s city tax of $15.00 per $1,000 of full value. On a $3 million building, the city tax alone is $45,000. Under Proposition 13, a sale generally resets the assessed value. Albany requires business licenses, but we did not verify its business license tax rates.

Due diligence that matters in Albany

Start with our commercial due diligence checklist, then add:

• Confirm the parcel is in Albany, not Berkeley or El Cerrito, since both corridors cross city lines.
• On San Pablo Avenue, check whether the site is in the northern node, where height and FAR bonuses depend on community benefits.
• Confirm ground-floor frontage rules before planning residential or office space on Solano or San Pablo.
• Size your project against the minor and major use permit thresholds.
• For bars, get the use permit and any supplemental license history.
• On the waterfront, assume any rezoning needs a citywide vote under Measure C.
• Budget the city transfer tax at $15 per $1,000 of full value.

Questions people ask

Sources & notes

1. Albany Municipal Code Section 20.12, Zoning Districts and Permitted Uses (GoCodebook)
2. Albany Municipal Code Section 20.24.020, Site Regulations (GoCodebook)
3. City of Albany Ordinance 2022-03, San Pablo Avenue Specific Plan zoning amendments
4. City of Albany, Golden Gate Fields Transition
5. Alameda County Clerk-Recorder, Real Property Transfer Tax

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

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