Commercial Real Estate in Foster City: Office Parks, Neighborhood Centers and Planned Mixed Use

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

Foster City is a planned community on the Bay shore east of San Mateo, and its commercial property follows the original plan: office campuses near State Route 92 and the Bay, neighborhood shopping centers placed within each residential area, and larger mixed-use sites that are always developed under a planned development permit. Little commercial land is left undeveloped, so most deals involve existing centers and office buildings, and redevelopment often means adding housing. Confirm the zoning and any planned development permit with Foster City Planning before relying on this page.

Who controls the parcel

Foster City is an incorporated city, so its Title 17 zoning code governs everything inside its limits, and most of its sections were reissued by ordinances in 2023 and 2024. Neighboring San Mateo and Belmont have their own codes. For the County’s role elsewhere, see our San Mateo County commercial guide.

The city relies heavily on planned development. The C-M district, for example, may be used only together with the PD combining district, so the PD approval and use permit for a site often tell you more than the base zone does.

Foster City zoning for commercial, industrial and mixed use

District	Intended uses	Notes
C-O Commercial Office	Administrative, professional and business offices	3 stories or 36 ft. 35% coverage. C-1 uses by conditional use permit when integrated into an office project
C-1 Neighborhood Business	Shops and services mainly for nearby residents, plus offices	1 story or 20 ft. 25% coverage. 28 ft from residential zones
C-2 General Business	Broader commercial uses	Chapter 17.26 (not reviewed in detail)
C-M Commercial Mix	Flexible mixed development, only with a PD overlay	8 stories or 90 ft. 15–60 units per acre where housing is included
C-A Commercial Automobile Repair and Service	Auto repair and service	Chapter 17.29 (not reviewed in detail)
M-1 Light Industrial	Light industry	Chapter 17.30 (not reviewed in detail)
PD, X, W and housing overlays	Planned development, future development, aquatic (lagoon) development, affordable and by-right housing	Combining districts that change what a base zone allows

Office districts and the C-M mixed-use district

C-O offices. The C-O chapter, restated by Ordinance 657 in 2023, permits offices outright, along with accessory pharmacies serving medical offices and subordinate restaurants. A conditional use permit is needed for:

full restaurants and on-premises alcohol where food is served
live entertainment
neighborhood retail integrated into a mainly office development

No residential use appears in either list. Sites must be at least 10,000 square feet, with 20-foot front and 10-foot side and rear yards.

C-M mixed use. The C-M chapter, restated in 2024 by Ordinances 674 and 684, is meant for large, flexible sites:

PD only. The district is used only with the PD combining district, and the use permit for each site lists what is allowed, consistent with the General Plan. The Planning Commission may approve similar uses.
Size. Sites must be at least 40,000 square feet and average 200 feet wide.
Height and coverage. Buildings may reach 8 stories or 90 feet, with 50% maximum coverage and 25% open green area.
Housing. Where housing is included, density runs from 15 to 60 units per acre, and residential projects must meet the city’s objective design standards in Chapter 17.96.
Setbacks. None, except that commercial buildings must sit 20 feet from abutting single-family zones.

Neighborhood shopping centers under C-1

Foster City’s neighborhood centers are deliberately small. Under C-1:

Permitted. Groceries, bakeries, drugstores, salons, delis, florists, laundromats, hardware stores and offices. Sit-down restaurants are permitted if they have no entertainment or on-site alcohol.
Regional-type retail. Stores that do not mainly serve the neighborhood need the planning director’s written approval and are capped at 33% of a center’s gross floor area.
Conditional use permit. Gas stations, minimarts with pumps, on-site alcohol with food, walk-up restaurants with outdoor eating, churches, clubs and live entertainment.
Form. Buildings are limited to one story or 20 feet and 25% lot coverage, with 15% open green area. Everything except parking and approved accessory uses must be inside an enclosed building.
Gas stations. An existing station may not reduce its service bays or auto service.

Housing overlays, cannabis and other rules

By-right housing overlay. The BRHO district, from Ordinance 657 in 2023, lets qualifying multifamily projects on sites designated apartment residential skip discretionary review if 20% of units are affordable to lower-income households. The community development director reviews them ministerially. The overlay can be added at an owner’s request.
Cannabis testing. In C-M, cannabis testing laboratories may be allowed under a site’s use permit only north of State Route 92, subject to Chapter 8.10.
Noise. In C-1 and C-M, dance, music, martial arts and fitness studios must keep doors and windows closed during noisy classes.
Lagoon frontage. The W Aquatic Development combining district (Chapter 17.40) applies to development on the city’s waterways; check it for any waterfront site.

Transfer tax, business tax and property tax

The San Mateo County Assessor-County Clerk-Recorder collects documentary transfer tax at 55 cents per $500, or $1.10 per $1,000, when a deed records. The County page names only the City of San Mateo as adding its own conveyance tax; we did not find a Foster City transfer tax, but confirm on the escrow estimate. Foster City levies a transient occupancy tax under Chapter 3.20; we did not confirm the rate or verify a business license tax. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Foster City

Start with our commercial due diligence checklist, then add:

Pull the PD approval and use permit for any C-M site; they define the allowed uses.
In a C-1 center, check the 33% cap on regional-type retail before signing a large non-neighborhood tenant.
Confirm conditional use permits for restaurants with alcohol, entertainment and gas stations.
For an office building, confirm any restaurant or retail use is covered by a conditional use permit.
For redevelopment with housing, check the BRHO overlay and the Chapter 17.96 design standards.
Check flood zone and levee status for Bay and lagoon-front parcels.

Questions people ask

How tall can an office building be in Foster City?

In C-O, three stories or 36 feet. The C-M planned mixed-use district allows up to eight stories or 90 feet.

Can a neighborhood center add a second story?

Not under C-1 as written, which limits buildings to one story or 20 feet.

Can I lease C-1 space to a big-box or regional retailer?

Only with the planning director’s written approval, and such stores may occupy no more than 33% of the center.

Does a restaurant serving wine need a permit?

Yes. On-premises alcohol with food needs a conditional use permit in C-1 and C-O.

Can housing be added to a commercial site?

In C-M, yes, at 15 to 60 units per acre under a PD. The BRHO overlay can allow by-right multifamily on qualifying apartment sites with 20% lower-income units.

Is there a Foster City transfer tax?

We found only the County tax of $1.10 per $1,000. Confirm on the escrow estimate.

Does Diamond handle commercial property in Foster City?

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

Sources & notes

Note: We did not review the C-2, C-A, M-1, PD, X or W chapters, the zoning map, or the hotel tax and business license chapters. Confirm with Foster City Planning.

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

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