Winery Production Facilities: Buying or Leasing Winery Space
A winery production facility is a building, or part of one, that local zoning and permits allow to be used for making wine and that TTB can approve as bonded wine premises, with the drainage, process water handling, power and fire protection winemaking needs. When you lease or buy winery space, three questions decide the deal: whether winery use is allowed and permitted on the site, whether the space can be described and secured the way TTB requires, and whether the building can handle process wastewater. Diamond handles commercial sales and leasing as well as all types of vineyard and winery property in Napa, Sonoma and the rest of our North Bay markets.
Most buyers of production space are growing brands moving out of a host winery, or owners and investors in industrial buildings already used for wine. This page is about the building and the site. The licensing steps are covered in our guide to starting a winery, and the county permits for agricultural wineries have their own pages, linked below.
Four ways to get production space
Each step up gives you more control and more obligations. The table compares the common arrangements.
| Arrangement | Whose premises | Who holds the federal qualification | Real estate commitment |
|---|---|---|---|
| Custom crush | The host winery’s | The host is the producer; you are its customer | A production contract, not a lease |
| Alternating proprietorship | The host’s, shared on a TTB-approved schedule | You, as a separately bonded winery | Usually a space and equipment agreement with the host |
| Leased production building | Your own, under a lease | You, for the premises you lease | A commercial lease, often with tenant improvements |
| Owned facility | Your own | You | Purchase of the building, or of land you then permit and build on |
The first two are explained in our guide to custom crush and alternating proprietorships. The rest of this page focuses on leasing or buying a building of your own.
Zoning: agricultural sites and industrial buildings
Where a building sits decides which rulebook applies. In both counties, a winery on agricultural land is a different permit from a winery in an industrial building in a city or business park.
Napa County
Wineries in the county’s agricultural zones are governed by the Winery Definition Ordinance and need a Napa winery use permit, with limits on production, visitors and grape sources. Industrial land works differently.
Section 18.44.020 of the county code covers the GI General Industrial district; we read it in GoCodebook’s unofficial reproduction, October 2026 edition. It allows storage and warehousing, including facilities for aging and storing alcoholic beverages, with site plan approval rather than a use permit.
Incidental retail is capped at 10% of gross floor area, and that path applies only to uses with no more than 25 full-time-equivalent employees. Wineries and other alcoholic beverage plants are listed among the uses that need a use permit.
The Napa County Airport Industrial Area, near Highways 12 and 29 between the city of Napa and American Canyon, has its own specific plan; a 1996 state CEQA notice described an update to the original 1986 plan. Production caps, grape-source conditions and other permit terms for a winery there can differ from those on agricultural land, so get the conditions that would apply to a specific parcel from Napa County Planning before you sign. Nearby, American Canyon is a separate city with its own zoning.
Sonoma County and its cities
In unincorporated Sonoma County, winery permits on agricultural land are covered in our page on Sonoma County winery use permits. Industrial buildings in cities such as Santa Rosa and Windsor follow each city’s zoning code and use table. Santa Rosa’s industrial and business park districts are compared in our guide to industrial and warehouse space; check the use table for winery or beverage production, not just warehousing, before you sign.
What TTB needs to see in the space
Federal rules shape the floor plan as much as the equipment does. Under 27 CFR 24.100, anyone who will produce wine must establish wine premises, apply under section 24.105, file any required bond and receive permission before starting. Under 24.101, only authorized operations may take place on bonded wine premises, chiefly the receipt, production, blending, cellar treatment, storage and bottling or packing of untaxpaid wine.
Section 24.111 sets out how the premises must be described, which matters most when you lease part of a building:
- The land. Each tract must be described precisely enough that the boundaries of the wine premises can be readily identified.
- A diagram drawn to scale, if TTB asks for one.
- Area designations. Any bonded area, taxpaid area, or area that alternates between the two must be clearly marked.
- Security. The application must explain how the premises are secured to protect the revenue.
- Each building must be described by size, construction and use.
- Part of a building. If your premises occupy only some rooms or floors, they must be described separately, along with what happens in the adjoining space and the routes in and out.
That last point is why multi-tenant industrial buildings need care. Your neighbors’ uses, shared doors and shared loading docks all go into the description. Later changes matter too: under 24.131, a proprietor must notify TTB before changing building construction or use in a way that affects the application, then report the change in its next amended application. Build time for that into any expansion or tenant improvement plan.
Building features that make space winery-ready
A warehouse becomes a winery through its utilities and finishes as much as its permits. When you tour a building, look at these items with your winemaker and engineer.
- Process wastewater. Cleaning tanks, barrels, presses and floors produces process water that must go to a permitted destination. Wineries that send it to land enroll under the State Water Board’s Winery Order, WQ 2021-0002-DWQ, adopted January 20, 2021, which covers facilities discharging 10,000 to 15,000,000 gallons of process water a year to land. A building on a public sewer instead needs the sanitation district’s approval to discharge. Our winery wastewater guide explains both routes.
- Floors and drains. Sloped slabs, trench or floor drains and washable surfaces in the production area, with drains routed to the right system.
- Power, cooling and water. Enough electrical capacity for refrigeration, pumps, presses and bottling, plus a water supply sized for harvest-season cleaning.
- Crush pad, docks and trucks. Outdoor space for receiving fruit, and room for trucks to deliver grapes and remove pomace. Check whether zoning or lease rules limit outdoor work or night operations during harvest.
- Fire and building code. The building official assigns an occupancy classification under the California Building Code (Title 24, Part 2). Production, barrel storage and a tasting room can be classified differently, which affects sprinklers, exits and separations, so ask for the current classification and any fire inspection reports.
- Caves. If the property includes a wine cave, ask for its building permit, final inspection and fire department approvals.
Lease or buy
Neither is right for every brand. The choice usually turns on capital, how long you expect to stay and how much custom work the space needs.
| Question | Leasing | Buying |
|---|---|---|
| Up-front capital | Deposit, improvements and equipment | Down payment, closing costs, improvements and equipment |
| Improvements | Negotiate who builds and who pays | Your decision, subject to permits |
| Permits and TTB filings | Need the landlord’s cooperation and consent in the lease | In your control |
| Exit | Lease term and renewal options; improvements may stay behind | Sale of a specialized building to a smaller pool of buyers |
A lease for winery use should name winery production and bonded wine premises as a permitted use, require the landlord to sign or support permit and TTB applications, allow inspections and set out who removes tanks and drains at the end.
Due diligence on a winery building
- Confirm the use. Get the zoning, any use permit and its conditions, including production caps, visitor limits and hours.
- Check the federal status. If the building is already bonded wine premises, learn who holds the registration and what changes on a sale or new lease. Our winery license transfer guide explains change in proprietorship.
- Review wastewater. Ask for the Winery Order enrollment or the sewer discharge approval, monitoring reports and the system’s design flow.
- Review the building. Permits, certificate of occupancy, fire inspections and sprinkler records, plus roof and slab condition.
- List the equipment. Separate fixtures that convey with the real estate from tanks, presses and bottling lines that are personal property or leased.
- Run the commercial checks. Title, survey, environmental review and utility capacity, as in our full winery due diligence checklist.
How Diamond works on winery facility searches
We search MLS and commercial listings and reach owners through our own client database and targeted off-market campaigns. We can’t promise access to other brokerages’ private listings, and MLS rules such as Clear Cooperation govern how listed properties are marketed. Diamond may refer you to partners we work with, such as engineers, wastewater consultants and lenders; you’re free to choose any provider.
This is general information, not legal advice; an alcohol beverage attorney and a commercial real estate attorney should review the lease or purchase agreement, the TTB premises description and the permit conditions for your building.
Questions people ask
Can I make wine in a leased warehouse?
Often, if the zoning allows winery or beverage production, the city or county issues any required permit, TTB approves the space as bonded wine premises and the building can handle process wastewater. Storage-only zoning is not enough for production.
Do I need a use permit for a winery in an industrial building in Napa County?
Yes, in the GI General Industrial district. Section 18.44.020 lists wineries and other alcoholic beverage plants among uses needing a use permit, while wine aging and storage can proceed with site plan approval (GoCodebook’s unofficial copy, October 2026). Confirm with Napa County Planning.
What does TTB require for winery premises?
An application describing the land, each building’s size, construction and use, the bonded and taxpaid areas and the security measures, plus a scale diagram if TTB asks (27 CFR 24.111), and permission before operating (24.100).
Can two wineries share one building?
Yes, through an alternating proprietorship that TTB approves, or with separately described premises in different parts of the building. Each arrangement has its own filing rules.
Does a winery building need a wastewater permit?
If it discharges 10,000 to 15,000,000 gallons of process water a year to land, it enrolls under the State Water Board’s Winery Order. A building that sends process water to a public sewer needs the sanitation district’s approval instead.
Should a growing brand lease or buy production space?
It depends on capital, how long you plan to stay and how much custom work the space needs. Leasing keeps capital free but depends on the landlord’s cooperation; buying gives control but leaves you with a specialized building to resell.
If you are outgrowing a host winery or weighing a winery building as an investment, tell us the production volume, location and timing you need. Visit our commercial real estate page or our vineyards and wineries hub, or contact Diamond directly.
Sources & notes
- Cornell Law School LII: 27 CFR 24.100, Wine premises, general
- Cornell Law School LII: 27 CFR 24.101, Bonded wine premises
- Cornell Law School LII: 27 CFR 24.111, Description of premises
- Cornell Law School LII: 27 CFR 24.131, Change in building construction and use of premises
- State Water Resources Control Board: General Order for Winery Process Water (updated July 13, 2026)
- GoCodebook code library (unofficial reproduction of the Napa County Code): Chapter 18.44, GI General Industrial District, section 18.44.020 (2026-10 edition)
- State Clearinghouse (CEQAnet): Airport Industrial Area Specific Plan update, notice of preparation (1996)
Last reviewed October 2026 by Matthew Martinez.
