Owning commercial real estate along the iconic coastline of Huntington Beach is one of the most coveted investment positions in Southern California. Properties situated along Pacific Coast Highway, Main Street, and the immediate downtown corridor command premium rents and benefit from a massive, year-round influx of tourism.
However, this high-visibility real estate comes with a highly specific set of rules. The City of Huntington Beach rigorously protects its tourist-driven economy through a specific zoning designation: CV, or Commercial Visitor Zoning.
If you are looking to purchase, lease, or reposition a commercial building near the water, understanding the nuances of the CV district is the difference between a lucrative, cash-flowing asset and a vacant building tied up in municipal red tape. Here is exactly how to navigate Huntington Beach’s CV zoning in 2026.
What is CV (Commercial Visitor) Zoning?
Under Title 21 of the Huntington Beach Zoning and Subdivision Ordinance, the Commercial Visitor (CV) district is established specifically to “provide opportunities for visitor-oriented commercial activities.”
Unlike a standard General Commercial (CG) zone where you can lease to almost any traditional business, the city dictates that properties in the CV zone must actively serve the people visiting the beach and the downtown resort area. The city’s goal is to create a continuous, engaging pedestrian experience. Dead space, private offices, or industrial uses break that pedestrian flow and are strictly regulated.
If your property is located in Downtown Huntington Beach, near the Pier, or in the Sunset Beach corridor, you are likely operating within this zoning framework.
The Golden Rule of CV Zoning: The “Ground Floor” Mandate
The most critical regulation that trips up new commercial landlords in Huntington Beach is the restriction on ground-floor leasing.
In a CV zone, the entire ground floor of a building must be dedicated to visitor-serving uses. * What this means: You can lease your street-level suites to surf shops, boutique clothing stores, cafes, restaurants, bike rental shops, or art galleries.
-
What this prohibits: You cannot lease ground-floor space to a CPA firm, a real estate brokerage, a tech startup’s private office, or a medical clinic.
If you want to lease to professional services or standard office tenants, those businesses must be located on the second floor or above. Attempting to sneak a non-compliant tenant into a ground-floor retail space will result in the city denying the tenant’s business license and Certificate of Occupancy, leaving you with an angry tenant and a vacant space.
Permitted Uses vs. Conditional Uses
Even if a business is technically “visitor-serving,” you cannot assume it can open its doors immediately. The CV zone categorizes businesses into two main buckets:
1. Permitted Uses (By Right)
These are businesses that the city inherently wants in the CV zone. If a prospective tenant falls into this category, they generally only need standard building permits (if doing tenant improvements) and a business license. Examples include:
-
Standard retail stores (apparel, souvenirs, sporting goods)
-
Art galleries and museums
-
Bakeries and coffee shops (without alcohol)
-
Bicycle and beach equipment rentals
2. Conditional Uses (Requires a CUP)
Many high-revenue tenants require a Conditional Use Permit (CUP). This is a formal, discretionary approval process where the city evaluates the potential impact of the business on the surrounding neighborhood (e.g., noise, traffic, crime). Securing a CUP in Huntington Beach takes time—often 4 to 6 months—and requires public hearings.
You or your tenant will need a CUP for:
-
Restaurants serving alcohol: Any establishment seeking a liquor license must get city approval first.
-
Live entertainment: If a bar or restaurant wants a live band or a DJ, it triggers strict noise and security reviews.
-
Late-night operations: Operating past standard hours in the downtown corridor often requires a specific permit to ensure it doesn’t disrupt nearby residential areas.
-
Hotels and motels: New lodging developments require rigorous environmental and traffic studies.
The Coastal Commission Overlay: The Double Hurdle
You cannot discuss CV zoning without addressing the elephant in the room. Almost every single property designated as Commercial Visitor is also located within the Coastal Zone Overlay (CZ).
This means your property is not just governed by the City of Huntington Beach, but also falls under the jurisdiction of the California Coastal Act.
As we detailed in our comprehensive Ultimate Guide to Huntington Beach Commercial Property Management, operating within the Coastal Zone adds a layer of complexity to any property change. If your new tenant wants to change the use of the space (e.g., converting a retail store into a restaurant) or make major modifications to the building’s exterior, it will likely trigger the need for a Coastal Development Permit (CDP).
Pro Tip for Landlords: Never allow a tenant to begin exterior demolition or significant structural changes without confirming their CDP status. The Coastal Commission enforces massive “After-the-Fact” financial penalties for unpermitted work in the coastal zone, which can ultimately become a lien on your property.
Parking: The Ultimate Dealbreaker
In the downtown Huntington Beach CV zone, parking is the single most common reason a commercial lease falls through.
The city has strict parking ratios based on the exact use of the square footage. For example:
-
General Retail: May require 1 parking space per 200 square feet.
-
Restaurants: Often require 1 parking space per 100 square feet (or more, depending on patio space).
The Scenario: You own a 2,000-square-foot building in the CV zone that was previously a clothing store. A high-end restaurant wants to sign a 10-year lease. Because the restaurant is a more “intense” use, the city will require more parking spaces than the clothing store did. If your lot doesn’t have the physical space to add those extra spots, the city will block the restaurant from opening.
The Solutions:
-
Downtown Parking In-Lieu Fees: In specific downtown areas, the city may allow you to pay a permanent “in-lieu” fee per deficient parking space, which funds municipal parking structures.
-
Shared Parking Agreements: You may be able to negotiate a legally binding agreement with a neighboring property owner who has surplus parking, provided their peak hours do not overlap with your tenant’s peak hours.
Managing Assets in the CV Zone: A Strategic Approach
Owning property in a Commercial Visitor zone is highly lucrative, but it requires proactive, specialized management. The foot traffic is intense, the salt air is corrosive, and the peak summer season (driven by events like the US Open of Surfing) puts immense strain on building infrastructure.
To maximize your Net Operating Income (NOI) in a CV zone:
-
Curate the Tenant Mix: Don’t just chase the highest rent; chase synergy. A great coffee shop next to a high-end surf boutique creates cross-traffic.
-
Audit Your Leases: Ensure your Triple Net (NNN) leases clearly define who is responsible for the specialized preventative maintenance required for coastal properties (like anti-corrosion treatments for rooftop HVAC units).
-
Pre-Screen for Zoning: Before wasting time negotiating a Letter of Intent (LOI), verify that the prospective tenant’s business model is a “Permitted Use” on the ground floor, or explicitly outline the contingencies and timelines for securing a CUP.
Conclusion
Huntington Beach’s CV zoning protects the vibrant, pedestrian-friendly atmosphere that makes the city world-famous. While the regulations regarding ground-floor uses, conditional permits, and parking are strict, they are entirely manageable with the right local expertise. By understanding the rules of the visitor-oriented district, you can position your commercial property to attract premium tenants and deliver exceptional, long-term returns.
