Commercial Real Estate in Redwood City: Downtown, Mixed-Use Corridors and Industrial Districts

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

Redwood City’s commercial property sits in a compact downtown, along El Camino Real, Veterans Boulevard and Broadway, in the industrial pockets east of the Caltrain line, and around the office campuses of Redwood Shores on the Bay. Each area falls under a different article of the city’s Zoning Code, and the Zoning Code has been amended repeatedly, most recently by an ordinance dated July 27, 2026. Confirm the district for any parcel with the Redwood City Planning Division before relying on this page.

Who controls the parcel

Inside city limits, the Redwood City Zoning Code governs land use; it is a separate part of the Municipal Code from the business, tax and tenant chapters. Redwood City is surrounded by unincorporated County land, including North Fair Oaks and Emerald Hills, and the Zoning Code has its own article on prezoning areas before annexation. A Middlefield Road or Woodside Road address may therefore be under County Title 8 rather than city rules; see our San Mateo County commercial guide and Emerald Hills guide. Harbor administration has its own chapter, Chapter 44, in the general Municipal Code.

Redwood City zoning for commercial, industrial and mixed use

The Zoning Code’s table of contents lists these nonresidential and mixed-use districts.

Downtown and the mixed-use corridors

Central Business. The CB district’s stated purpose is to develop downtown as a central shopping area for the city and its surroundings. Retail, personal services, financial and professional offices, restaurants serving beer and wine, and medical offices under 2,500 square feet are permitted, provided the use is inside a building. A use permit is needed for hotels, nightclubs, full-liquor bars and restaurants, liquor stores, parking garages, and medical offices of 2,500 square feet or more. Condominiums and rental units are permitted, buildings may reach 100 feet, lot coverage is unlimited and no yards are required except a five-foot landscaped setback on El Camino Real.

Mixed-Use Corridors. Article 53, first adopted in 2011, created five corridor districts:

• MUC-ECR. El Camino Real as a walkable boulevard, stepping down toward adjoining neighborhoods.
• MUC-VB. Veterans Boulevard as a gateway from Highway 101 and Woodside Road toward downtown and the Bay; it is the only corridor where lab-type R&D is permitted, subject to the San Carlos Airport land use plan.
• MUC-RC. Redwood Creek, with active frontage on Main Street, Walnut Street and Veterans.
• MUC-SB and MUC-GB. Broadway south of downtown, and large sites at Broadway and Woodside Road meant for destination projects.

Across all five, apartments, retail, restaurants, offices and small gyms are permitted by right; bars, hotels, live/work units and liquor stores need a conditional use permit; and motels and drive-through restaurants are not allowed. Medical offices are permitted only within half a mile of a major transit stop. The article says the corridors carry the city’s highest residential densities outside the Downtown Precise Plan area.

Industrial land, live/work and other special uses

Light Industrial Incubator. LII exists to give small and growing light-industrial firms space, including converted older buildings, and the code says corporate offices are discouraged there. Custom manufacturing, lab-type R&D, warehousing and mini-storage are permitted, with accessory office capped at half the floor area. Professional offices up to 10,000 square feet and retail up to 2,500 square feet per lot are permitted, with larger amounts by use permit. Medical offices, bars and drive-throughs are not allowed.

Live/work units. Section 31.4 sets live/work units at 750 to 3,000 square feet, with no more than half the space in nonresidential use, up to two outside employees by right and a use permit for three or more. The units cannot be split off and rented or sold separately.

Outdoor dining and temporary uses. Accessory outdoor commercial uses in commercial and mixed-use zones must keep a six-foot clear walkway and may use no more than 30% of non-accessible parking spaces. Food trucks, markets and events need a Zoning Administrator temporary use permit, typically for 90 days.

Cannabis and firearms. The Zoning Code has dedicated articles for commercial cannabis activity and firearms retail, so check those before leasing to either use.

Lodging and short-term rentals

Hotels are a conditional use downtown and on the corridors, and extended-stay hotels are limited to El Camino and Veterans. Short-term rentals under Section 31.3 are allowed only in a host’s principal residence, with unhosted stays capped at 120 days a year, so investors cannot run apartments or most ADUs as nightly rentals. Hosts register with the city and remit transient occupancy tax under Chapter 32, Article IV.

Transfer tax, business tax and property tax

The County Recorder charges documentary transfer tax at $0.55 per $500 of value, less assumed liens. Redwood City’s Article III of Chapter 32, adopted by Ordinance 1750 in April 1978, sets $0.275 per $500 under the state enabling law and assigns administration to the County Recorder. Cities using that law typically share the County rate rather than add to it, and the Recorder’s page names only the City of San Mateo as adding its own tax; confirm the total on the escrow estimate. The city’s business license tax is in Chapter 32, Article V; we did not verify rates. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Redwood City

Start with our commercial due diligence checklist, then add:

• Confirm the parcel is inside city limits and not in North Fair Oaks or another County pocket.
• Identify the exact MUC sub-district; permitted uses differ for labs, extended-stay hotels and gas stations.
• For medical tenants on a corridor, measure the distance to a major transit stop.
• Near Highway 101, note that new homes within 500 feet of a freeway lane need a use permit and air quality findings.
• For lab or R&D space on Veterans Boulevard, check consistency with the San Carlos Airport plan.
• In LII, track office and retail floor area against the per-lot caps.

Questions people ask

Sources & notes

1. Redwood City Zoning Code, table of contents (GoCodebook)
2. Article 14, CB Central Business District
3. Article 53, Mixed-Use Corridor districts
4. Article 17A, LII Light Industrial Incubator District
5. Article 31, Special Uses
6. Chapter 32, Article III, Documentary Transfer Tax
7. San Mateo County Clerk-Recorder, documentary transfer tax

Note: We did not read the Downtown Precise Plan, the MUC height and density tables, or the PO, CN, CG, CP, IR, IP, GI, MUN, MUT, MUW and RSB articles beyond their titles. Whether the city transfer tax is credited within the County rate was inferred, not confirmed.

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

Related: Redwood City real estate guide · Multifamily property in Redwood City · Commercial real estate services