Commercial Real Estate in El Granada: Burnham Strip, Midcoast C-1 Rules and Coastal Permits

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

El Granada is a small unincorporated Coastside town between Half Moon Bay and Princeton, and its commercial property is a short list: a handful of village storefronts and offices, the open Burnham Strip along Highway 1, and the harbor-oriented business land just north at Princeton and Pillar Point. Nearly everything here sits in the Coastal Zone, so commercial use runs through County coastal zoning and Local Coastal Program review. Confirm each parcel’s zoning with San Mateo County Planning and Building before relying on this page.

Who controls the parcel

El Granada is not a city. San Mateo County zones it under Title 8, the County’s Zoning and Development Code, and the County’s Local Coastal Program adds coastal development rules for the whole Midcoast. A coastal development permit is generally needed for new development in addition to any use permit, and County decisions in the Coastal Zone can be appealable to the California Coastal Commission.

Local services come from special districts. The Granada Community Services District, formerly the Granada Sanitary District, runs the sewer collection system for roughly 2,500 homes and about 6,000 people. It also handles garbage and recycling, and since October 1, 2014 it has held parks and recreation powers for El Granada, Miramar, Clipper Ridge and Princeton. A five-member elected board governs it. Ask the district about sewer connection permits before planning any new floor area.

El Granada zoning for commercial and mixed use

District	Intended uses	Notes
EG El Granada Gateway	Low-intensity use of the Burnham Strip that keeps its open, scenic character	Every listed use needs a use permit. 16 ft height. 10% coverage. 3.5-acre minimum parcel
C-1 Neighborhood Business (Midcoast)	Neighborhood retail and services	Homes only above the first floor; residential space no larger than commercial unless affordable
CCR Coastside Commercial Recreation (nearby Princeton)	Visitor, boater and Coastside resident services	Most uses by use permit. 36 ft, or 28 ft east of Denniston Creek
Residential with S-17 Midcoast	Single-family neighborhoods	Home occupations only; 28 ft height on most lots

The Burnham Strip and the EG district

The EG chapter, adopted by Ordinance 4561 on May 24, 2011, is written for one place: the Burnham Strip, the open land between Highway 1 and the town. Its stated aim is low-intensity development that preserves the strip’s visual and open space character.

Allowed by use permit only. Community centers, libraries, parks and trails, outdoor athletic and recreation areas, temporary outdoor sales, public parking and restrooms for Surfer’s Beach, stormwater treatment and a Highway 1 realignment. The chapter lists no retail, office or housing use.

Standards. Structures are limited to 16 feet and 10% of the parcel. Impervious ground surfaces are capped at another 10%, with an exception possible where drainage stays within that amount. The minimum parcel is 3.5 acres, and setbacks are 50 feet in front and 20 feet on the sides and rear. Buildings must be screened from Highway 1 by landscaping. Each use may have one sign of up to 20 square feet per face, and flashing, animated and off-premises signs are barred. An investor should treat EG land as civic and recreation land, not as a commercial site.

Village commercial and mixed use under Midcoast C-1

Where El Granada parcels are zoned C-1, the County’s C-1 chapter applies with Midcoast-specific limits added by Ordinance 4556 in 2011:

Housing location. In the Midcoast LCP Update Project Area, dwellings must be above the first floor of the main building.
Housing size. Residential floor area may not exceed the commercial floor area unless the extra space is deed-restricted affordable housing under a County contract.
Paving. Low impervious surfaces such as driveways, patios and walkways are capped at 10% of the parcel.
Winter grading. Grading between October 15 and April 15 is restricted unless erosion controls are approved.
Lodging. B&B inns are a use-permit use in C-1 only outside the Coastal Zone.
Setbacks. No front yard is required; side and rear yards apply only next to residential districts.

Coastal permits, the housing cap and lodging

Midcoast housing cap. Any mixed-use project with apartments runs into LCP Policy 1.23, which limits the urban Midcoast to 40 housing unit building permits a year, ADUs included. The County’s cap page, last updated October 27, 2026, says 102 units were permitted in 2025 (71 of them affordable). As a result only 18 can be issued across 2026 and 2027 unless the LCP is amended. The County will not accept new residential building permit applications until January 1, 2028 or until an amendment provides relief, though planning applications are still processed and approved projects join a waitlist. The Coastal Commission has set the amendment, LCP-2-SMC-26-0048-1, for November 4, 2026. It would revise how the annual cap is calculated, and the Commission may instead extend its deadline. We cannot say how it will rule.

Airport. Half Moon Bay Airport sits just up the coast; check the Airport Overlay on any parcel nearby.

Lodging tax. Inns and short-term rentals in unincorporated areas register for transient occupancy tax through the County’s contractor, HdL.

Transfer tax, business tax and property tax

The San Mateo County Assessor-County Clerk-Recorder collects documentary transfer tax at 55 cents per $500, or $1.10 per $1,000, at recording; El Granada has no city tax because it has no city government. Assumed liens may be deducted, and exemptions require a transfer tax affidavit. We did not verify an unincorporated business license tax. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in El Granada

Start with our commercial due diligence checklist, then add:

Confirm the base district and every combining district, including Coastal Development, Design Review and Airport Overlay.
Budget for a coastal development permit and possible Coastal Commission appeal.
Confirm sewer service and connection capacity with the Granada Community Services District, and water service with the local water provider.
For any housing component, check the Midcoast cap waitlist before counting units.
On C-1 land, confirm the residential floor area stays within the commercial floor area.
Respect the October 15 to April 15 grading limits in construction schedules.

Questions people ask

Can I build shops on the Burnham Strip?

The EG district lists no retail or office use. It allows civic, park, recreation and beach-access uses by use permit only.

Can I add an apartment above my El Granada storefront?

In Midcoast C-1, homes must be above the first floor and no larger than the commercial space unless affordable. New units also count toward the Midcoast cap, which is closed to new building permit applications until 2028 unless the LCP changes.

Who provides sewer service in El Granada?

The Granada Community Services District, which also covers Miramar, Clipper Ridge and Princeton.

Is a coastal development permit required?

Generally yes for new development in the Coastal Zone, in addition to any use permit.

What changes could come from the November 4, 2026 Coastal Commission hearing?

The amendment would revise the method for calculating the Midcoast housing cap. The outcome is not known.

Is there a local transfer tax?

No city tax applies; the County rate is $1.10 per $1,000.

Does Diamond handle commercial property in El Granada?

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

Sources & notes

Note: We did not review the zoning map, so we have not confirmed which village parcels are C-1. CCR figures come from the County code as summarized on our San Mateo County page. We did not verify water connection availability.

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

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