Commercial Real Estate in Davis: Downtown Code, Research Zoning and the Voter-Approval Rule

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

Commercial property in Davis sits in a compact footprint: the downtown grid between the Union Pacific tracks and the UC Davis campus, neighborhood shopping centers spread through the residential areas, freeway-oriented sites along Interstate 80, and research and light industrial land on the east and north edges of town. What sets Davis apart is a rule found in few California cities: turning farmland or open space at the edge of town into urban land needs a citywide vote. Confirm zoning, any pending entitlements and taxes with the City of Davis before relying on this page.

Who controls the parcel

Inside city limits, Chapter 40 of the Davis Municipal Code is the zoning ordinance, and the zoning map, not plan figures, decides a parcel’s district. Downtown is governed by the Downtown Davis Specific Plan and the form-based standards in Articles 40.13 and 40.14. Land just outside the city, including the UC Davis campus and county farmland, is not under city zoning: the University plans its own land, and unincorporated parcels fall under Yolo County Title 8 (see our Yolo County commercial guide). Many larger sites carry a Planned Development (P-D) district under Article 40.22, so the governing PD ordinance, not a base zone, sets their uses.

Davis zoning for commercial, industrial and mixed use

District	Intended uses	Notes
MS-L Main Street-Large	Downtown’s most intense mix: retail, food, entertainment, civic and transit uses with housing	5 stories and 75 ft; up to 7 stories and 85 ft where the zoning map allows
MS-M Main Street-Medium	Neighborhood-serving retail, food, services and artisan production	4 stories and 55 ft; 5 stories and 65 ft where mapped
N-M and N-L Neighborhood zones	Mostly residential downtown edges, with small commercial uses in ancillary buildings and at corners	4 and 5 stories respectively
C-N Commercial Neighborhood (combining)	Neighborhood shopping centers	Article 40.12
CMU Commercial Mixed Use	Auto sales and repair, nursery and farm supply, offices up to 10,000 sq ft, service businesses	Zones of 2 acres or more near freeway ramps; 3 stories or 35 ft
C-S Commercial Service, C-R Community Retail, A-C Auto Center	Service commercial, larger retail, auto dealers	Articles 40.17, 40.18A, 40.16
M-U Mixed Use	Mixed commercial and residential	Article 40.15
I-R Industrial Administration and Research	Offices, testing and research labs, electronics, food and pharmaceutical manufacturing	3 stories or 50 ft; 20,000 sq ft minimum lot
I Industrial	General industry	Article 40.20
P-D Planned Development	Uses set by each PD ordinance	Article 40.22

Downtown Davis: the form-based Downtown Code

The current downtown zones were adopted by Ordinance 2637 on January 17, 2023 and amended several times since, most recently in November 2025. Together, Articles 40.13 and 40.14 are called the Downtown Code, and they regulate building form first and use second.

Building type, frontage and use. Every downtown building site needs an allowed building type, at least one frontage type and at least one listed use. A use not listed for a zone is not allowed there.
Storefront standards. In both Main Street zones, ground floors need a ceiling height of at least 13 feet, nonresidential floors sit level with the sidewalk, and entrances can be no more than 50 feet apart. MS-L requires ground-floor space at least 40 feet deep, MS-M at least 30. Maker shopfronts, suited to small production spaces, are allowed in MS-M only on side streets.
Parking caps, not minimums. Downtown sets maximum parking: 2.5 spaces per 1,000 square feet of nonresidential space, with parking set back from the front of the lot.
Housing in the mix. Residential use is permitted in both Main Street zones. On sites listed for ministerial housing approval, at least 20% of units must be affordable to lower-income households.
Large sites. Larger downtown sites, generally over about 1.5 acres, may have to provide civic space and new street connections.

The citywide exceptions and modifications in Article 40.27 are superseded in the downtown zones, and where the two downtown articles conflict, the stricter standard controls.

Research, freeway and edge sites

I-R. The I-R district is meant for large administrative campuses, research institutions and non-nuisance specialized manufacturing. Laboratories, electronics assembly and food or pharmaceutical manufacturing are permitted. Restaurants serving the district and uses handling hazardous materials need a conditional use permit. Most uses must be enclosed, and setbacks grow to 50 feet next to residential land.

CMU. Freeway-oriented CMU sites allow auto sales and repair, farm supply, professional offices up to 10,000 square feet, and service businesses. Restaurants, drive-throughs, service stations, motels and outdoor sales are conditional uses.

The voter-approval rule. Under Article 41.01, changing an agricultural, open space or urban reserve designation to an urban one needs City Council approval and a majority vote of Davis voters, based on baseline project features those voters later protect. The article traces to the 2000 ordinance known as Measure J, with amending ordinances in 2010 and 2020, often called Measures R and D; confirm the current renewal term with the city. Any land use decision on the Covell Center and Nishi properties also goes to voters. Exemptions include public schools and parks, the parcel north of Sutter Davis Hospital for medical uses, and up to five acres a year for permanently affordable housing.

Cannabis, alcohol, lodging and historic rules

Cannabis. Commercial cannabis is regulated in zoning Article 40.26B and requires a city business permit under Chapter 21.
Alcohol. Article 40.40 adds rules for alcohol sales.
Lodging. Article 15.05 sets the city’s transient occupancy tax at 12% of rent for stays of 30 days or less, effective August 1, 2016.
Historic resources. Article 40.23 manages designated historic resources, which matters for older downtown storefronts.

Transfer tax, business tax and property tax

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

City tax. Davis has its own real property transfer tax. Article 15.04 sets it at 27.5 cents per $500 of consideration or value, excluding liens that remain on the property, with the County Recorder administering it. Exemptions include deeds securing debt, gifts and transfers at death, divorce divisions and certain reorganizations. Confirm the combined amount on your escrow estimate.

Business tax and Prop 13. License taxes are in Chapter 19, Article 19.04; we did not verify rates. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Davis

Start with our commercial due diligence checklist, then add:

Confirm the parcel’s district on the zoning map and whether a PD ordinance governs it.
Downtown, confirm the zone, building type and frontage rules before planning a remodel or addition.
For a lab or manufacturing user, check I-R performance standards and hazardous materials rules.
For edge or farm parcels, assume any urban redesignation needs a citywide vote.
Add the city transfer tax to the county tax in closing costs.
For hotels or short-stay units, include the 12% TOT in pro formas.

Questions people ask

Does Davis have a city transfer tax?

Yes. Article 15.04 charges 27.5 cents per $500, on top of Yolo County’s $0.55 per $500.

How tall can a downtown Davis building be?

Up to five stories in MS-L, or seven where the zoning map allows, and four or five in MS-M.

Do I need a public vote to develop land at the edge of Davis?

Generally yes, if it means changing an agricultural, open space or urban reserve designation to urban use, under Article 41.01.

Where can a lab or biotech company locate in Davis?

I-R permits research and testing labs and pharmaceutical manufacturing; check PD ordinances on business park sites too.

Can I build an office in a CMU zone?

Yes, professional offices up to 10,000 square feet are permitted in CMU; larger ones need an administrative use permit.

Is there a minimum parking requirement downtown?

The Downtown Code sets maximums rather than minimums, including 2.5 spaces per 1,000 square feet of nonresidential space.

Does Diamond handle commercial property in Davis?

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

Sources & notes

Note: We did not read Articles 40.12, 40.15, 40.16, 40.17, 40.18A, 40.20 or 40.22, the Main Street use tables, the Downtown Davis Specific Plan itself, or license tax rates. The names Measure R and Measure D are common usage; the code cites only the amending ordinances.

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

Inquire about a listing or to schedule a meeting

Matthew Martinez

Your inquiry is processed through our iHomefinder service. Review the form’s contact choices before submitting. Privacy Policy · Terms of Use.