Commercial Real Estate in Monterey County: Inland and Coastal Zoning, Cannabis and Lodging Rules

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

Commercial property in Monterey County ranges from Salinas Valley agricultural processing plants and highway frontage in Castroville and Prunedale to visitor lodging in Carmel Valley and Big Sur and harbor businesses in Moss Landing. The cities write their own zoning, while the County uses two separate codes: Title 21 for inland land and Title 20 for the Coastal Zone. Start every deal by confirming the jurisdiction and, for County parcels, which title applies.

Who controls the parcel

Twelve cities, from Salinas and Monterey to King City and Sand City, regulate land inside their limits. Outside them, the County’s Housing and Community Development department applies the inland zoning code, Title 21, and the coastal zoning code, Title 20. The Coastal Commission certified the County’s Local Coastal Program in 1988, the year the County began issuing coastal development permits, according to the Commission’s LCP review page. That program is organized around four coastal planning areas: North County, Del Monte Forest, Carmel and Big Sur Coast.

Monterey County zoning for commercial, industrial and mixed use

Title 21 sets out inland districts in chapters 21.10 through 21.56; Title 20 lists 17 coastal districts in Section 20.08.010, each marked "(CZ)".

LC and HC each carry a 35-foot default height that a map suffix such as "(24′)" can lower, so read the full zoning string, not just the district.

Moss Landing, Castroville, Carmel Valley and East Garrison

Moss Landing. The MLC district is meant to keep a mix of businesses and homes along Moss Landing Road while protecting its historic and architectural character. Retail shops, small offices and antique stores need a coastal administrative permit; restaurants, service stations, marine and fishing-related wholesale and bed and breakfasts need a coastal development permit. Second-story housing over ground-floor commerce is allowed by permit at up to four units per acre.

Castroville and Boronda. The County’s plans library lists the Castroville Community Plan, updated May 5, 2010, and the Boronda Neighborhood Improvement Plan near Salinas.

Carmel Valley and Spreckels. The same library lists Carmel Valley Village development criteria and Spreckels design guidelines, which add standards on top of base zoning.

East Garrison. The former Fort Ord community east of Marina is governed by the East Garrison Specific Plan and its pattern book. The 2010 General Plan, adopted October 26, 2010, is the umbrella document.

Cannabis, vacation rentals and airport plans

Cannabis. County Chapter 21.67 allows cannabis retail in LC, HC and MU, distribution and testing in HC, LI, HI and AI, volatile manufacturing only in HI, and indoor or mixed-light cultivation in industrial and Farmland zones, each with an administrative permit and a separate commercial cannabis permit. A 600-foot buffer applies from schools, child care, youth centers, playgrounds and drug recovery facilities, and retailers must generally be 1,500 feet apart.

Vacation rentals. The County’s short-term rental page says transient use of 30 days or less needs a discretionary permit and is limited to certain inland districts; on the coast it is handled as a similar-use coastal permit the County estimates at about $12,000. The vacation rental ordinance page reports that the Board adopted coastal Ordinance No. 5439 on September 23, 2025, effective October 24, 2025; the permit page notes existing coastal rules apply until the Coastal Commission certifies it.

Airports. The County’s plans library lists land use plans for the Marina, Monterey Peninsula, Mesa Del Rey (King City) and Salinas airports.

Transfer tax, business tax and property tax

Lodging tax. The Treasurer-Tax Collector applies a 10.5% transient occupancy tax in the unincorporated County on hotels, motels and owner-rented homes.

Business license. Under County Code Chapter 7.02, the County business license covers hotels, vacation rentals, homestays and commercial cannabis businesses, and since October 11, 2024 every TOT operator.

Transfer and property tax. The County Recorder collects documentary transfer tax at recording; we did not find a posted County or city rate, so confirm it on the escrow estimate. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Monterey County

• Confirm city or County, then Title 21 (inland) or Title 20 (coastal), and read any map suffix for height or design control.
• On the Monterey Peninsula, check water: the Monterey Peninsula Water Management District requires a water permit to set a meter or intensify use on an existing connection.
• For coastal sites, budget for coastal development permits and Coastal Commission appeal risk.
• For lodging, verify TOT registration and a County business license.
• For cannabis, confirm the district, buffers and both County permits.
• Work through our commercial due diligence checklist.

Questions people ask

Sources & notes

1. Monterey County zoning code index, Titles 20 and 21
2. Title 20, Section 20.08 coastal districts
3. Title 20, Chapter 20.20 MLC district
4. Title 21, Chapter 21.18 LC district
5. Title 21, Chapter 21.20 HC district
6. Title 21, Chapter 21.67 commercial cannabis
7. California Coastal Commission, Monterey County LCP review
8. County HCD, General Plan and land use plans
9. County HCD, short-term rentals
10. County HCD, vacation rental ordinances
11. County Treasurer-Tax Collector, TOT
12. County Treasurer-Tax Collector, business license
13. MPWMD, water permits

City rules are covered on each linked city page. This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

Related: Monterey County real estate guide · Multifamily property in Monterey County · Commercial real estate services