Commercial Real Estate in Imperial Beach: C/MU Zones, Seacoast Drive and Coastal Permits

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

Imperial Beach is a small coastal city at the far southwest corner of San Diego County, and almost all of its commercial land sits in three mixed-use zones: Palm Avenue and the city’s general commercial areas, the Seacoast Drive beach strip, and a handful of neighborhood nodes. Because nearly the whole city lies in or near the Coastal Zone, and because Imperial Beach requires active storefronts along its main streets, a buyer or tenant should confirm the zone, overlay and permit path for each parcel with the city before committing. This page covers those rules as of October 2026.

Who controls the parcel

The City of Imperial Beach regulates land use citywide through Title 19 of its municipal code. Zones are shown on the city’s Land Use/Zoning Map, which the code adopts as part of the title. Land that is not classified on the map, or that is annexed later, defaults to R-1-6000 until it is rezoned (IBMC zone list and map rules).

Two other agencies matter. The California Coastal Commission keeps appeal authority over projects in mapped areas after local certification, so some city approvals can be appealed to the state (IBMC Ch. 19.07 and 19.87 summary). The San Diego County Assessor/Recorder/County Clerk handles deeds, the transfer tax and reassessment.

Imperial Beach zoning for commercial, industrial and mixed use

Imperial Beach has no industrial zone. Its 13 zones include three commercial/mixed-use zones and a commercial/recreation-ecotourism zone (IBMC zone list). One shared land use table in Chapter 19.23 governs uses in the three C/MU zones, and any use it doesn’t list is prohibited unless the City Council finds it compatible (IBMC Ch. 19.23).

District	Intended uses	Notes
C/MU-1 General Commercial and Mixed-Use	Community and neighborhood retail and office, mixed use, multifamily	Up to 1 unit per 1,000 sq ft of lot area; height capped at 4 stories or 40 ft; only C/MU zone allowing department stores
C/MU-2 Seacoast Commercial and Mixed-Use	Visitor-serving retail: specialty stores, surf shops, restaurants, hotels and motels	1 unit per 1,500 sq ft base; 3 stories or 30 ft base height; Seacoast overlay inside it
C/MU-3 Neighborhood Commercial and Mixed-Use	Neighborhood shops and services with housing above or beside	1 unit per 1,500 sq ft of lot area
C/R-ET Commercial/Recreation-Ecotourism	Recreation and ecotourism-oriented commercial	Check the zone chapter and map for the specific sites
PF Public Facilities	Government and public uses	Not a private commercial zone
UR Urban Reserve	Future development	Needs a Specific Plan before development; 26 ft height limit

Sources: IBMC zone list, Ch. 19.26, Ch. 19.27, UR summary.

All three C/MU zones allow offices, banks, restaurants, retail, clinics, personal services, galleries and health clubs by right. Bars, liquor stores and pool halls need a conditional use permit (CUP) in C/MU-1 and C/MU-2. Drive-throughs and pawnshops need a CUP in C/MU-1 and C/MU-3. Incidental manufacturing needs a CUP everywhere, and light manufacturing isn’t allowed in any C/MU zone (IBMC Ch. 19.23).

Palm Avenue, Seacoast Drive and the Seacoast overlay

Palm Avenue (C/MU-1). Buildings fronting Palm Avenue, including ones with apartments, must put active commercial uses along at least 60% of the ground-floor frontage. Those spaces need direct access from the sidewalk or a plaza and must be at least 25 ft deep. Ground-floor commercial space needs a 15 ft floor-to-ceiling height (IBMC § 19.26.020, § 19.26.070).

Seacoast Drive (C/MU-2). The same 60% active-frontage rule applies to buildings on Seacoast Drive, and buildings there sit at the front property line with an upper-story setback on at least half the street façade. East of Seacoast Drive, a project that isn’t purely residential can reach 3 stories and 35 ft with a CUP, provided it protects street-end ocean views and meets two of the code’s incentives, such as a site over 20,000 sq ft or green building certification. Kiosks are capped at 20 sq ft each and 10 locations in the zone (IBMC Ch. 19.27).

Seacoast Mixed-Use/Residential overlay. Between Ocean Boulevard and Ocean Lane, from Palm Avenue south to Imperial Beach Boulevard, the overlay acts as a transition area. It allows single-family homes, short-term rentals and any C/MU-2 use, with different yard rules for commercial and residential buildings. Single-family uses are limited to 2 stories or 26 ft (IBMC § 19.27.140).

Hotels. A specific plan for a hotel can allow up to 4 stories or 40 ft, plus reduced parking backed by a parking study. The City Council must find it consistent with the general plan and the local coastal program (IBMC § 19.27.150).

Coastal permits, flood hazard and the Tijuana River

Coastal Development Permits. Chapter 19.87 sets out when a project needs a Coastal Development Permit, and Chapter 19.07 maps where the Coastal Commission keeps appeal jurisdiction (zoning summary). Plan for that step in your schedule.
Flood Hazard overlay. Parcels in the flood overlay may need a Flood Hazard Area Development Permit and an engineer’s certification (IBMC Ch. 19.32).
Site plan review. In C/MU-2, the City Council reviews new construction, residential projects and CUP uses. The Community Development Director handles smaller additions and façade changes (IBMC § 19.27.020).
Beach water quality. The city has documented long-running cross-border sewage pollution from the Tijuana River, including a 2023 county emergency declaration and a September 2024 letter marking 1,000 straight days of beach closures (City of Imperial Beach). For a visitor-serving business, read the city’s current updates.
Short-term rentals and lodging. Hotels, motels, B&Bs and short-term rentals are permitted in all three C/MU zones, and timeshares need a CUP in C/MU-1 and C/MU-2 (IBMC Ch. 19.23).

Transfer tax, business tax and property tax

The San Diego County Recorder collects documentary transfer tax at $0.55 per $500 of value, net of liens assumed, on conveyances over $100. The Recorder collects it for both the county and the cities (SDARCC recording). I did not find a separate Imperial Beach transfer tax.

Every transfer needs a Preliminary Change of Ownership Report, and the Recorder may charge $20 extra if it’s missing (SDARCC). Under Proposition 13, a change of ownership resets assessed value to the purchase price as of that date. Businesses operating in the city need a city business license (permits and licenses). Confirm the current fee with the city.

Due diligence that matters in Imperial Beach

Confirm the zone and any overlay on the official map. The Seacoast overlay and the flood overlay change setbacks, height and uses.
For Palm Avenue or Seacoast Drive frontage, test whether the floor plan meets the 60% active-commercial rule and the 15 ft ground-floor height.
Find out whether the parcel falls within Coastal Commission appeal jurisdiction, and budget time for a Coastal Development Permit.
Check Chapter 19.48 parking for the intended use early. The code points every C/MU zone to it.
Confirm whether the intended use is P, C or N in Chapter 19.23. Bars, liquor sales and drive-throughs vary by zone.
For beach-dependent businesses, review the city’s sewage and closure updates.
Work through our commercial due diligence checklist.

Questions people ask

Does Imperial Beach have industrial zoning?

No. The city’s zone list has no industrial district, and light manufacturing isn’t allowed in its C/MU zones. Incidental manufacturing tied to a retail use can be approved with a CUP.

Can I build apartments over shops on Palm Avenue?

Yes. Multifamily and mixed use are permitted in C/MU-1 at up to one unit per 1,000 sq ft of lot area. The ground floor along Palm Avenue still needs active commercial uses on at least 60% of the frontage.

How tall can a building be on Seacoast Drive?

The base limit in C/MU-2 is 3 stories or 30 ft. East of Seacoast Drive, a non-residential or mixed project can reach 35 ft with a CUP and incentives. A hotel under a specific plan can reach 40 ft.

Are short-term rentals allowed?

Short-term rentals are listed as permitted in the C/MU zones and in the Seacoast overlay. Confirm current licensing with the city before you buy for that use.

Will my project need a Coastal Development Permit?

Many projects in Imperial Beach do. Chapter 19.87 sets the triggers, and in mapped areas the Coastal Commission can hear appeals.

Can I open a bar or liquor store?

Both need a CUP in C/MU-1 and C/MU-2, and neither is listed as allowed in C/MU-3. The CUP can carry conditions such as operating hours.

Does Diamond handle commercial property in Imperial Beach?

Contact Matthew Martinez to talk through buying, selling or leasing commercial property in Imperial Beach.

Sources & notes

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

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