Commercial Real Estate in Hercules: Commercial and Mixed-Use Districts, the Waterfront and Central Hercules

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

Hercules sits on San Pablo Bay where Interstate 80 meets Highway 4. Its commercial property is mostly shopping centers and pad sites near the freeway, mixed-use frontage along Sycamore Avenue and San Pablo Avenue, and a waterfront district planned around Hercules Point and a future transit hub. The city’s zoning code has more specialized mixed-use districts than most cities its size, so confirm the district and any planned development plan for a parcel with Hercules Planning before you commit.

Who controls the parcel

Hercules is an incorporated city with its own zoning ordinance, Title 13 of the municipal code. The code’s cover page shows the ordinance was approved October 13, 1998, as Ordinance 346, and has been amended many times since. Points to watch:

• Rodeo. The unincorporated community of Rodeo borders Hercules to the north. The city’s business license page tells Rodeo businesses to deal with the county instead. See our Rodeo commercial guide.
• Pinole. The city of Pinole borders Hercules to the south. See our Pinole guide.
• The Bay shoreline. The Waterfront Commercial district must comply with the McAteer-Petris Act and the Bay Plan, which brings in the Bay Conservation and Development Commission for shoreline work.

Hercules zoning for commercial, industrial and mixed use

Title 13 has three plain commercial districts, an industrial district and a long list of mixed-use and plan districts.

Where commercial activity is concentrated

• Sycamore Avenue and San Pablo Avenue. These are the named major frontages in the PC-R district. Residential density starts at 40 units per acre, counted on top of the commercial floor area when uses share a site. The code lets the Town Centrale project on Sycamore Avenue reach 80 units per acre under an approved planned development plan. Live-work units need at least 600 square feet of living space.
• Hercules Point and the waterfront. The WC district covers Hercules Point and the waterfront. Small shops, restaurants and offices need an administrative permit. Hotels, liquor-serving restaurants, boat sales and repair, marinas and ferry or train facilities need a conditional use permit. Buildings along the water edge should be one story, stepping up as they move inland.
• Waterfront and Central Hercules plans. Chapter 13-27 sets standards for the Waterfront District Master Plan. Chapter 13-28 incorporates the separate Central Hercules Plan Regulating Code by reference, most recently amended by Ordinance 515 in 2018. Chapter 13-29 covers Sycamore Crossing. Parcels in these areas follow plan standards rather than the base district tables.

Permits and other Hercules rules

• Every new or expanded commercial project needs a permit. In CG, CC and CR, new and expanded development needs an administrative or conditional use permit plus design review. CG and CC sites of 10 acres or more need a planned development plan.
• The 2,000-square-foot line. Retail stores and offices of 2,000 square feet or less get an administrative permit in all three commercial districts. Larger stores need a conditional permit, and larger offices need one in CC and CR. Auto sales and service, convenience stores, groceries and liquor stores are conditional in CG and CC.
• Industrial performance rules. New industrial uses with substantial odor, dust, noise or toxic impacts are prohibited. Existing heavy industry must reduce impacts when it expands or changes. A hazardous materials management plan goes in with the use permit.
• Waterfront requirements. WC projects need a planned development plan, a shoreline access and management plan, an erosion control plan and predrilling for piles.
• Cannabis. The commercial district chapter does not address cannabis. Confirm the city’s position before leasing to a cannabis business.
• Home businesses. Home-based businesses need an administrative or conditional use permit from Planning in addition to a business license.

Transfer tax, business tax and property tax

• County tax. The Contra Costa Clerk-Recorder collects the county documentary transfer tax of $0.55 per $500, and lists separate city taxes only for El Cerrito and Richmond.
• Hercules code. The city’s Chapter 8-3, from Ordinance 336 in 1996, imposes a real property transfer tax of $0.275 per $500, administered by the County Clerk-Recorder. That is half the county rate, which under state law is typically credited against the county tax rather than added. Because the Recorder does not list Hercules as charging an extra city tax, confirm with the Recorder before you quote closing costs.
• Business license. The city requires a business license for every organization operating in Hercules, renewed each year by January 31.
• Property tax. Under Proposition 13, a sale generally resets the assessed value.

Due diligence that matters in Hercules

Start with our commercial due diligence checklist, then add:

• Confirm the parcel is in Hercules, not unincorporated Rodeo or the city of Pinole.
• Identify the base district and whether the Waterfront, Central Hercules or Sycamore Crossing plan governs.
• Check each tenant against the 2,000-square-foot administrative permit line.
• For waterfront parcels, scope BCDC review, shoreline access and pile predrilling.
• For industrial sites near homes, test plans against the 100-foot setbacks and performance standards.
• Confirm the business license and any use permit for each tenant.

Questions people ask

Sources & notes

1. Hercules Municipal Code (Code Publishing): Title 13, Chapter 13-8, 13-9, 13-15, 13-17, 13-28, Chapter 8-3
2. City of Hercules, Business Licenses
3. Contra Costa Clerk-Recorder, Documentary Transfer Tax

Note: We did not open the Central Hercules Plan Regulating Code, the Waterfront District Master Plan standards, or the NTC, HTC, CP and PO/RD chapters. The city transfer tax’s interaction with the county tax is not confirmed. Business license rates were not posted.

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

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