Commercial Real Estate in Livermore: Industrial Districts, Specific Plans and Wine Country Rules

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

Livermore is the eastern anchor of the Tri-Valley. Its commercial property includes R&D and light industrial parks along I-580 and around the municipal airport, a walkable downtown on First Street, the planned Isabel Avenue neighborhood and the wineries of the South Livermore Valley. Livermore’s zoning code still uses an older, chapter-by-district format, and specific plans override it in key areas. Check a parcel’s district and any specific plan with the city before you sign a letter of intent.

Who controls the parcel

The City of Livermore regulates land inside its limits through the Livermore Planning and Zoning Code, last updated September 25, 2026. Land outside the city, in the North Livermore hills and the rural South Livermore Valley, is under Alameda County and the county’s Measure D, which LAFCo describes as steering urban growth into Livermore, Dublin and Pleasanton. A "Livermore" address outside city limits can carry very different rules, so check both the jurisdiction line and any specific plan.

Livermore zoning for commercial, industrial and mixed use

The old CG General Commercial chapter was repealed by Ordinance 1736. If a title report or appraisal still cites CG, confirm the current zoning.

Downtown, Isabel and the industrial corridor

Downtown Specific Plan. In the Downtown Specific Plan, five plan areas take the place of standard zoning districts: the Downtown Core, two gateways and the north and south neighborhoods. Its total capacity includes about 1,000,000 square feet of commercial space, 356,000 square feet of office, 300 hotel rooms and up to 15 movie screens. Retail is meant to cluster in the core. Changes to historic or potentially historic buildings need a Certificate of Appropriateness. Historic buildings rated 1 through 4 may get relaxed standards for a change of use, with a CUP. Any topic the plan does not cover falls back to the zoning code.

Isabel Neighborhood. The Isabel Neighborhood Specific Plan centers on a future Valley Link rail station in the I-580 median just east of Isabel Avenue. It plans about 2.1 million square feet of new office, business park and commercial space, including a neighborhood center. The state CEQA record shows the 2018 version never took effect after BART dropped its Livermore extension. A 2020 version switched the rail service to Valley Link, and a July 2024 amendment covered the Isabel Crossing project.

Industrial parks. Livermore’s I-1 and I-2 rules are written for R&D and production. Light distribution in I-1 needs a CUP and specific findings, including a cap of 25% of a building. In I-2, warehousing and distribution, self-storage and recycling inside a building are permitted outright. Fast food, banks and personal services in either district need a CUP and must serve the surrounding industrial area. Hazardous materials uses fall under Chapter 3-30 and need a finding of acceptable risk.

Wine country and airport-area rules

South Livermore Valley. In SLV-AG, boutique wineries producing 100 to 5,000 cases and boutique olive mills are permitted, with on-site retail capped at 20% of building area. Small wineries of 5,000 to 10,000 cases are permitted on parcels over 10 acres. Larger wineries, food service, a seated restaurant of up to 49 indoor seats, outdoor entertainment and bed-and-breakfasts need a CUP. New lots need 100 acres. Site plan and design review must come before grading or building permits.

Airport. In CS, any structure over 25 feet within half a mile of an airport runway needs a CUP consistent with FAA guidance.

Short-term rentals. Lodging stays of 30 days or less in homes need a city permit under Chapter 5.90 and pay transient occupancy tax.

Transfer tax, business tax and property tax

Livermore has no city transfer tax. The Alameda County Clerk-Recorder lists none for Livermore, so only the county’s $0.55 per $500 applies. That saves real money compared with Hayward, Oakland or Berkeley. Under Proposition 13, a sale generally triggers reassessment.

Livermore’s business license tax, Chapter 3.08, is based mostly on the prior year’s gross receipts. Selected rates per $1,000 of gross receipts:

The minimum tax is $40 a year once gross receipts pass $5,000. A landlord’s tax and a tenant’s tax are separate, so budget for both.

Due diligence that matters in Livermore

Begin with our commercial due diligence checklist, then:

• Confirm the parcel is inside city limits and whether a specific plan (Downtown, Isabel or South Livermore Valley) controls it.
• Check building coverage (40% in I-1, 45% in I-2) before planning an expansion.
• For distribution in I-1, confirm a CUP exists and the 25% cap is met.
• Near the airport, check height limits and CUP triggers.
• For historic downtown buildings, check the historic rating and Certificate of Appropriateness needs.
• For winery property, confirm case production against the SLV-AG thresholds and any CUPs for food or events.

Questions people ask

Sources & notes

1. Livermore Planning and Zoning Code (GoCodebook, updated Sept. 25, 2026): Chapters 2-31, 2-37, 2-55, 2-58, 2-61 and 2-85
2. Livermore Downtown Specific Plan, Ch. 4 Land Use Development Policies
3. City of Livermore, Isabel Neighborhood Specific Plan
4. CEQAnet, Isabel Neighborhood Specific Plan (SCH 2016042039)
5. Livermore Municipal Code Ch. 3.08, Business License Tax
6. City of Livermore, Short Term Rental
7. Alameda LAFCo Measure D review (March 2022)
8. 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.

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