Commercial Real Estate in Fairfax: CC, CH and CL Zones, Formula Business Rules and the Workforce Housing Overlay

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

Fairfax is a small town at the head of the Ross Valley, and its commercial property is packed into a compact downtown around Bolinas Road and Broadway and a strip along Sir Francis Drake Boulevard. Buildings are mostly older storefronts, small offices, restaurants and a handful of service and warehouse sites. The town’s code favors local, owner-operated businesses, so the rules matter as much as the building. Confirm zoning and any overlay for each parcel with the Fairfax Planning and Building Department.

Who controls the parcel

Inside town limits, the Town of Fairfax decides land use under Title 17 of its municipal code. Parcels just outside the limits, such as the unincorporated areas toward Oak Manor and Sleepy Hollow, fall under Marin County’s Title 22 instead; see our Marin County commercial guide. Sewer service in town comes from the Ross Valley Sanitary District, whose territory includes Fairfax, San Anselmo, Ross and Larkspur. Its rules apply to a sale regardless of zoning.

Fairfax zoning for commercial, industrial and mixed use

Section 17.012.010 sets up five commercial zones plus a planned development district, a public domain zone and a workforce housing overlay. Fairfax has no industrial zone. The closest thing to one is CS.

District	Intended uses	Notes
CC Central Commercial	Retail core with continuous storefronts and foot traffic	Uses must be indoors. Ground-floor offices and services need a use permit. 28.5 ft and two stories on flatter lots. Parking at 1 space per 200 sq ft unless Ch. 17.052 says otherwise
CH Highway Commercial	Car-oriented retail, services, offices and warehouses with longer hours	Motels, hotels, B&Bs, auto repair and car washes by use permit. Minimum site 7,500 sq ft
CL Limited Commercial	Service uses: medical and professional offices, clinics, studios, day care, restaurants	Minimum site 20,000 sq ft, 75 ft wide. Hotels and private schools by use permit
CS Commercial Service	Lumber yards, building supply, enclosed warehousing and distribution	Contractors, printing, bakeries and light assembly by use permit. One story, 15 ft. Minimum site 20,000 sq ft
CR Commercial Recreation	Recreation-oriented commercial uses	Chapter 17.108
PDD Planned Development	Site-specific plans	Chapter 17.112
WHO-A / WHO-B overlay	Workforce housing and mixed use on identified sites	Mixed use up to 45 ft and four stories in WHO-A, 35 ft and three stories in WHO-B

Unlisted uses are banned in every commercial zone unless the Planning Director finds them similar to a listed use. In CC, that finding requires a retail orientation, foot traffic and a storefront facing the street.

Downtown and the Sir Francis Drake corridor

Downtown (CC). The CC chapter describes the zone as the town’s retail core, with few driveways or blank walls. It lists 67 categories of permitted principal uses. It keeps entertainment and admission-charging venues, outdoor patron areas, drive-up windows, liquor stores and smoke shops under a use permit. No yards are required unless a lot borders a residential zone. A buyer planning a music venue, a bar with live performers or a sidewalk seating program should budget for a Planning Commission hearing.

Housing on commercial land. CC, CH and CL all permit multifamily housing at a minimum of 20 units per acre on General Plan housing opportunity sites. On other sites, live/work and shopkeeper units above the ground floor need a use permit. The Workforce Housing Overlay, adopted by Ordinance 887 in February 2024, puts WHO-A on downtown sites and WHO-B on Sir Francis Drake sites. Base density is 40 units per acre in WHO-A and 20 in WHO-B, rising to 75 and 40 units per acre with more affordable units. Qualifying affordable projects can use streamlined ministerial review. Build-to rules apply on Bolinas Road and Broadway.

Formula businesses, cannabis and lodging

Formula businesses. Under Chapter 17.040, Article II, adopted in 2015, a chain store or chain restaurant needs a conditional use permit in any commercial zone. This covers businesses with standardized decor, menus, uniforms or signs that were not operating in Fairfax before April 1, 2000. The Planning Commission must make six findings, including consistency with the town’s village character and no significant harm to similar local businesses. The CC chapter also lists newer formula businesses among barred uses. Read both before signing a lease with a national tenant.

Cannabis. Chapter 17.110, last amended in March 2026, allows no more than two cannabis retailers at a time. A medical storefront may locate in CH or CC, and delivery-only retail in CH, CC or CL. Storefronts must be 600 feet from schools and youth centers. Facilities are capped at 1,500 square feet, and the Town Council approves design and signs. Each operator also needs a town cannabis business permit and a state license.

Lodging. Hotels, motels and B&Bs need a use permit in CH and CL. Fairfax charges a 10% hotel users tax on stays of 30 days or less, collected by the operator and remitted quarterly. In CH and CL, a short-term rental is allowed only in an ADU or JADU built before January 1, 2020, and Chapter 5.57 subjects STRs to the council’s program rules.

Transfer tax, business tax and property tax

The Marin County Recorder’s transfer tax sheet shows the county rate of $0.55 per $500, net of assumed liens. That sheet lists only San Rafael as a city with an added tax. However, Fairfax’s own Chapter 3.16 sets a town real property transfer tax of $0.275 per $500, also net of liens, administered by the County Recorder. Under state law this kind of city tax is usually credited against the county’s, so confirm the actual split with escrow before closing.

Chapter 5.08 makes it unlawful to do business in town without a license, with a separate license for each location. Fees are set by Town Council resolution. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Fairfax

Start with our commercial due diligence checklist, then add:

Confirm the zone, whether the site is a housing opportunity site, and whether a WHO overlay applies.
Test any national or regional tenant against the formula business definition before the lease is drafted.
Check minimum site size: 20,000 square feet in CL and CS, 7,500 in CH.
Get the Ross Valley Sanitary District lateral Certificate of Compliance, which is required at sale and for remodels over $75,000.
Count on-site parking against the 1-per-200-square-feet default and any Chapter 17.052 standard.
For a hillside lot, confirm which height rule applies, since steeper downhill lots may reach 35 feet.

Questions people ask

Can a chain coffee shop open in downtown Fairfax?

Only with a conditional use permit and six Planning Commission findings, and the CC chapter’s own ban on newer formula businesses also needs review. Treat the deal as contingent on approval.

Is there an industrial zone in Fairfax?

No. CS Commercial Service is the closest. It allows building supply and enclosed warehousing by right, and printing, bakeries and contractor offices by use permit.

Can I build apartments over a storefront?

Yes, in many cases. CC, CH and CL allow multifamily at 20 or more units per acre on housing opportunity sites, and upper-floor units elsewhere by use permit. WHO sites allow more.

Does Fairfax have its own transfer tax?

Its code sets $0.275 per $500. The county’s sheet lists only San Rafael, so confirm how escrow applies the Fairfax tax against the county’s $0.55.

Are cannabis dispensaries allowed?

Up to two retailers total. Medical storefronts may locate in CH or CC, and delivery-only operators in CH, CC or CL.

What is the hotel tax in Fairfax?

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

What sewer paperwork does a sale need?

A Certificate of Compliance for the private sewer lateral from the Ross Valley Sanitary District.

Does Diamond handle commercial property in Fairfax?

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

Sources & notes

Fairfax Municipal Code § 17.012.010, zone districts (GoCodebook)
Fairfax Municipal Code zone chapters: 17.100 CC, 17.096 CH, 17.092 CL, 17.104 CS, 17.126 WHO
Fairfax Ch. 17.040 Art. II, formula businesses (Ord. 787, 2015)
Fairfax Ch. 17.110, cannabis uses
Fairfax Title 3: Ch. 3.16 transfer tax, Ch. 3.32 hotel users tax
Fairfax Title 5: Ch. 5.08 business licenses, Ch. 5.57 short-term rentals
Marin County Recorder, transfer tax
Ross Valley Sanitary District, lateral compliance

Note: We did not review the CR and PDD chapters, the zoning map or the business license fee resolution. The CC chapter’s formula-business clause and Article II should be read together with town staff.

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

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