Commercial Real Estate in Corte Madera: C-1 to C-4 Districts, the 34% FAR Rule and the Tamal Vista Mixed-Use Corridor

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

Corte Madera is a small town along Highway 101 with an outsized share of Marin’s regional retail. Its commercial land includes the regional shopping districts beside the freeway, the Tamal Vista Boulevard corridor, neighborhood centers such as Old Corte Madera Square, and a small light industrial and service area. Much of the flat land sits on bay mud, and the town caps building intensity tightly. Confirm each parcel’s district, overlay and any Housing Element rezoning with the Corte Madera Planning Department.

Who controls the parcel

Within town limits, the Town of Corte Madera regulates land use under Title 18 of its municipal code. Unincorporated pockets nearby, including parts of Greenbrae, fall to Marin County; see our Marin County commercial guide. Sewer collection is run by Sanitary District No. 2, a separate district with its own five-member elected board. It serves Corte Madera plus parts of the Tiburon Peninsula, Larkspur, the Greenbrae Boardwalk and unincorporated Marin. Treat its connection and capacity rules as a separate approval.

Corte Madera zoning for commercial, industrial and mixed use

Title 18 sets four commercial districts in Chapter 18.12, plus office, mixed-use and light industrial districts. Each one caps floor area at 34% of net site area, with floor area for required parking excluded.

District	Intended uses	Notes
C-1 Local Shopping	Neighborhood groceries, pharmacies, hardware, barbers	30 ft. Residential units, B&Bs, offices, liquor stores and supermarkets over 10,000 sq ft by conditional use permit
C-2 Regional Shopping	Department stores, offices, larger-format retail	35 ft. Hotels and venues with live or amplified music by use permit
C-3 Highway Commercial	Auto sales and service, car washes, bus depots	35 ft. Hotels and drive-through restaurants by use permit. Hotel bonus possible
C-4 Commercial Service	Warehouses, contractor yards, machine shops, trucking terminals	35 ft. Auto repair, recycling and lumberyards by use permit. Outdoor storage screened and under 6 ft
O Professional Office	Professional and administrative offices as a buffer by homes	30 ft, 34% FAR. Medical, banks and in-building restaurants by use permit. 10,000 sq ft minimum new lot
MX-1 Tamal Vista Corridor	Mixed residential and non-residential uses	25 ft in the Neighborhood Zone, 35 ft in the Highway Zone. 0.34 FAR non-residential, up to 0.4 with housing
M Light Industrial	Warehousing, distribution, printing, mini-storage, recording studios	35 ft (30 ft within 500 ft of homes). 40,000 sq ft minimum site. Biotech, assembly and machine shops by use permit

In every C district, operating between 11 p.m. and 6 a.m. needs a conditional use permit. C-1, C-2 and C-3 businesses generally must operate indoors.

Tamal Vista, the hotel bonus and the 2023 rezoning

MX-1. The mixed-use district, adopted in 2016, covers the Tamal Vista Boulevard area between Madera Boulevard and Wornum Drive. It splits into a lower Neighborhood Zone and a taller Highway Zone next to 101. At least one non-residential use must be in the Neighborhood Zone, and establishments there are capped at 5,000 square feet unless the Planning Commission approves more. Housing tops out at 15.1 units per acre, or 20 for qualifying deed-restricted senior housing. Yards along the freeway are 50 feet.

Hotel bonus. Under § 18.12.050 and a matching MX rule, a hotel on a C-3 or C-4 lot over one acre may reach 0.70 FAR and 47 feet. It requires a study session, a community meeting, bird-safe design and Planning Commission findings on community benefit. The bonus is limited to four lots, two per bonus area, so availability is finite.

Housing Element rezoning. The town’s 6th Cycle Housing Element subsequent EIR, filed in October 2022, studied rezoning about 25 acres of land now zoned C-1 through C-4, MX-1 and M to allow up to 883 homes. Code sections across Title 18 were amended in 2024 (Ordinance 1038). For a commercial site, ask whether it is a Housing Element site, because that can change both its value and what an owner may do with it.

Bay mud, hillsides, historic areas and short-term rentals

Baylands overlay. The BRNH Baylands Risk Zone and Natural Habitat overlay covers low-slope land on bay mud and adds flood and settlement review. Budget for geotechnical work and foundation costs on flatland parcels.
Old Corte Madera Square. The AHO overlay there allows housing at 25 to 31.5 units per acre. A ground-floor residential use facing the square needs a use permit to keep storefronts commercial. Historic-character findings apply to design review.
Historic and hillside overlays. The H-P district requires design review for exterior work, demolition and signs on designated resources, and the HLC overlay limits hillside density.
Lodging. Hotels need a use permit in C-2 and C-3. Under Chapter 5.34 (2023), a residential short-term rental needs a town license and is limited to 75 nights a year and one property per owner. ADUs, SB 9 units and multifamily units are ineligible, so legal hotel rooms have no STR competition from apartments.

Transfer tax, business tax and property tax

The Marin County Recorder’s sheet shows the county documentary transfer tax at $0.55 per $500, net of assumed liens, and lists only San Rafael as adding a city tax. Corte Madera’s code still contains a town documentary stamp tax (Chapter 3.12) of $0.275 per $500, adopted in 1967 and administered by the County Recorder. That structure normally shares, rather than adds to, the county rate, so confirm with escrow how it appears on the closing statement.

Hotels collect a 10% transient occupancy tax on stays of 30 days or less. Every business needs a town business license, due January 1, with general businesses classed by gross receipts. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Corte Madera

Start with our commercial due diligence checklist, then add:

Measure existing floor area against the 34% FAR cap before planning any addition.
Check whether the site is a Housing Element rezoning site or in the AHO, BRNH, HLC or H-P overlay.
Confirm late-night hours and indoor-operation limits for retail and restaurant tenants.
Get geotechnical and flood review for bay mud parcels.
For a hotel, confirm whether one of the four bonus lots is still available.
Confirm Sanitary District No. 2 connection and lateral requirements.

Questions people ask

How big can a new commercial building be in Corte Madera?

Generally no more than 34% of net site area, not counting required parking. Hotels on qualifying C-3 and C-4 lots can reach 0.70 FAR.

Can a store stay open all night?

Not by right. Operating between 11 p.m. and 6 a.m. needs a conditional use permit in every commercial district.

Where is mixed use allowed?

Mainly in MX-1 along Tamal Vista Boulevard, at up to 15.1 units per acre, and in the AHO overlay at Old Corte Madera Square. C-1 allows residential units by use permit.

Is there industrial land?

Yes. The M Light Industrial district allows warehousing, distribution, printing and mini-storage, and biotech or assembly by use permit, on sites of at least 40,000 square feet.

Does Corte Madera have its own transfer tax?

Its code sets a $0.275 per $500 stamp tax. The county sheet lists only San Rafael, so confirm the actual charge with escrow.

What is the hotel tax?

10% of rent for stays of 30 days or less.

Does Diamond handle commercial property in Corte Madera?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Corte Madera.

Sources & notes

Corte Madera Municipal Code (GoCodebook, Oct. 2026): Ch. 18.10 O, Ch. 18.12 C districts, Ch. 18.13 MX, Ch. 18.14 M, Ch. 18.18 overlays
Corte Madera Title 3 and 5: Ch. 3.08 TOT, Ch. 3.12 stamp tax, Ch. 5.04 business licenses, Ch. 5.34 STR license
CEQAnet SCH 2005062023, 6th Cycle Housing Element SEIR (Oct. 2022)
Marin LAFCo, Sanitary District No. 2
Marin County Recorder, transfer tax

Note: We did not review the zoning map, the final adopted Housing Element site list or the hotel bonus area map.

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

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