Commercial Real Estate in North Highlands: Watt Avenue Plans, McClellan Park and County Zoning

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

North Highlands is a large unincorporated community in north Sacramento County, built around Watt Avenue and next to the former McClellan Air Force Base. Its commercial property runs from neighborhood strip centers and auto-oriented sites along Watt Avenue to warehouses, offices and aviation buildings in McClellan Park. Corridor rules here are in transition, with a new specific plan in preparation, so confirm the zoning and plan status for a parcel with Sacramento County Planning before relying on this page.

Who controls the parcel

North Highlands is not a city, even where an address reads Sacramento. Sacramento County regulates it through the County Zoning Code and a set of special planning areas listed in the County’s SPA directory. Several matter for business property:

North Highlands Town Center SPA, adopted April 23, 2008.
North Watt Corridor Plan SPA, adopted August 21, 2012.
Watt Avenue SPA and McClellan North SPA, which cover other corridor and base-edge areas.
McClellan Park SPA, the former air base, which the County describes as bounded by North Highlands on the east.

The City of Sacramento lies to the west of McClellan Park, so check that a parcel near the boundary is really unincorporated. The City’s transfer tax and zoning differ.

North Highlands zoning for commercial, industrial and mixed use

District or plan area	Intended uses	Notes
LC Light Commercial	Retail goods and services along major streets and in neighborhoods	Common along older corridor frontage
GC General Commercial	Heavier commercial uses on major streets or in commercial subdivisions	Auto-oriented and service businesses
BP Business Professional Office	Offices with integrated light commercial or residential	Office conversions
CMZ Corridor Mixed-Use	Residential and neighborhood commercial infill along corridors	Housing is required
MP, M-1, M-2	Industrial-office park, light and heavy industry	Concentrated in and near McClellan
North Highlands Town Center SPA	Town center rules with its own table of uses	Thrift store category removed June 11, 2026
North Watt Corridor Plan SPA	Corridor rules with its own land use table	Amended 2024 for Housing Element rezoning; thrift store category removed 2026
McClellan Park SPA	Aviation, industrial, office, commercial and housing districts	2,571.5 acres under County jurisdiction

Watt Avenue: current plans and the pending specific plan

Current rules. Two SPAs shape most of the Watt Avenue frontage today.

Town Center SPA. Sits in Title V, Chapter 4 of the Zoning Code. The County amended its table of uses effective June 11, 2026, removing the discount and thrift store use classification as part of a state-law zoning code update.
North Watt Corridor Plan SPA. Adopted by Resolution 2012-0012 and amended on August 20, 2024 through the 6th Cycle Housing Element rezone. It received the same thrift store change in June 2026.
The use tables. Neither SPA page reproduces its use table online. Pull the archived ordinance PDFs for the parcel’s sub-area before assuming a use is allowed.

What is coming. The County’s SPA pages say both ordinances are proposed to be superseded by the North Watt Avenue Specific Plan, which they expect to be adopted in November 2026. The CEQA notice of preparation, received January 14, 2026, describes the plan as:

Area. About 705 acres along a four-mile stretch of Watt Avenue from Interstate 80 north to Antelope Road/U Street.
Zoning. Three new zoning districts, each with its own uses and development and design standards.
Land uses. Housing, commercial retail and services, parks and open space, with industrial uses south of the Union Pacific main line.
Scale. Development data listing 7,260 residential units and 225 acres of industrial land.

Until the Board adopts the plan, the existing SPAs control. Buyers should underwrite a Watt Avenue site under current rules and treat the specific plan as a possible change, not a settled outcome.

McClellan Park

Districts. The McClellan Park SPA was adopted July 23, 1997 as the McClellan Technology Center SPA and last amended April 18, 2023. It covers 2,826.5 acres, 2,571.5 of them under County jurisdiction, and turns the former base into a business park centered on aviation and industry. It has four districts:

Core Aviation/Industrial. Includes the airfield, aircraft maintenance and bulk fuel storage.
East McClellan. The main activity center, with office, commercial and housing subdistricts.
South McClellan. Office and light industrial, with access from I-80 via Winters Street.
West McClellan. Light industrial, an industrial office park on Bell Avenue, and heavy industrial.

Uses not listed fall back to the base zones such as M-1, M-2, LC, GC and MP. Cemeteries, stadiums, race tracks and surface mining are prohibited in the core aviation district.

Airport and historic rules.

Approach zone. Uses there need Airport Land Use Commission review against the McClellan comprehensive land use plan.
Easements and noise. Every use outside the Airfield Subdistrict needs an avigation easement before building permits. Offices must meet a 50 dB CNEL interior noise standard, and noise-sensitive uses must meet 45 dB.
Historic district. Projects in the Sacramento Air Depot Historic District go to a design review committee, and the final decision must follow the County Historic Review Official’s recommendation.

Transfer tax, business tax and property tax

Unincorporated North Highlands pays only the County documentary transfer tax of $0.55 per $500 of value, less assumed loans, per the County Clerk-Recorder. The City of Sacramento’s added 0.275% applies only inside city limits. A business located here needs a County General Business License from the Department of Finance, and lodging pays the County’s 12% transient occupancy tax plus tourism assessments, per the County’s STR page. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in North Highlands

Start with our commercial due diligence checklist, then add:

Identify which SPA, if any, covers the parcel, and pull its archived use table.
Track the North Watt Avenue Specific Plan’s hearings; adoption could change permitted uses and standards on Watt Avenue.
In McClellan Park, confirm the district and subdistrict, ALUC review needs and avigation easement.
For buildings in the Sacramento Air Depot Historic District, budget for historic design review.
Check for base-era environmental conditions on former military land.
Confirm a thrift or discount store tenant’s status after the June 2026 use table change.

Questions people ask

Is North Highlands part of the City of Sacramento?

No. It is unincorporated Sacramento County, though the city borders McClellan Park to the west.

What is the North Watt Avenue Specific Plan?

A County plan in preparation for about 705 acres along Watt Avenue from I-80 to Antelope Road/U Street. The County expects adoption in November 2026; until then, the existing SPAs apply.

What uses are allowed at McClellan Park?

Aviation and industrial uses in the core district, office, commercial and housing in East McClellan, and office and light or heavy industry in the South and West districts.

Do McClellan Park buildings need an avigation easement?

Yes, for all uses outside the Airfield Subdistrict, before building permits issue.

Can a thrift store open on Watt Avenue?

The County removed the thrift store classification from both Watt Avenue SPAs’ use tables in June 2026; ask County Planning how such a use is classified now.

Is there a city business license in North Highlands?

No city license. Businesses need a County General Business License.

Does Diamond handle commercial property in North Highlands?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in North Highlands.

Sources & notes

Note: We did not read the archived use tables for the Town Center and North Watt Corridor SPAs, the Watt Avenue or McClellan North SPAs, or the McClellan Park development standards. The specific plan’s November 2026 adoption is the County’s expectation, not a completed action.

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

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