Commercial Real Estate in Marshall: Tomales Bay Shoreline, Mariculture and Coastal Rules

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

Marshall is a narrow shoreline settlement on the east side of Tomales Bay, strung along Highway 1 between the bay and the ranchland behind it. Its commercial property is a short list of bay-oriented businesses: a store and tavern, seafood restaurants, oyster operations, a boat works and a marina site, plus inns and rooms. Almost all of it sits in the Coastal Zone, often on pilings or on fill, and much is tied to the bay’s mariculture economy. Confirm zoning, coastal permit history and wastewater service for each parcel with the Marin County Community Development Agency.

Who controls the parcel

Marshall is unincorporated. Marin County regulates land use through its coastal zoning code (Title 20) and the Local Coastal Program. The county’s community plans list includes the East Shore Community Plan for Tomales Bay (1987), covering Highway 1 from Millerton Point to Tomales. The 2019 certified LCP Land Use Plan has an East Shore section with a Marshall historic area map.

Other agencies matter too:

State and federal waters. Oyster leases in Tomales Bay are state tidelands allotments, and work in the bay involves state and federal regulators beyond the county.
Caltrans. Highway 1 is a state highway. Caltrans recently processed a culvert replacement at postmile 40.3 at Clark Road in Marshall, which required a local coastal permit. Driveway, parking and frontage work along the highway needs Caltrans review.
Water. North Marin Water District’s West Marin factsheet lists its service communities as Point Reyes Station, Olema, Bear Valley, Inverness Park and Paradise Ranch Estates, not Marshall. Confirm each Marshall parcel’s actual water source, whether a well, spring or small water system, before relying on it for a commercial use.

Marshall zoning for commercial, industrial and mixed use

The coastal use tables in Chapter 20.62 set what each district allows. We did not confirm which commercial districts are mapped in Marshall, so verify on the zoning map.

District	Intended uses	Notes from the coastal tables
C-VCR Village Commercial/Residential	Village-serving and visitor-serving commerce with housing	Restaurants up to 40 patrons, retail, offices and small B&Bs principal permitted. Bars, hotels, larger restaurants and marinas by use permit
C-H1 Limited Roadside Business	Rural roadside commercial	Small restaurants permitted, most else by use permit, no bars or marinas
C-RCR Resort and Commercial Recreation	Visitor resorts and recreation	Hotels principal permitted, marinas and restaurants by use permit
C-APZ Agricultural Production Zone	Agriculture at 1 unit per 60 acres	Farm stands under 500 sq ft and processing under 5,000 sq ft can be principal permitted; ag homestays by use permit. A 2024 permit near Marshall shows C-APZ-60
C-RA / C-R1 residential	Homes along the shoreline	Most of the "town"

The East Shore shoreline, mariculture and access

A built-out strip. The county’s LCP Unit II describes Marshall as extremely narrow and largely built out with homes on pilings, with undeveloped lots used by the public for parking, viewing and clamming. It names the Marshall Store and Tavern, Marshall Boat Works, Tony’s Seafood and Marconi Cove Marina among the east shore’s private access sites, and notes that restaurants such as Nick’s Cove, the Marshall Tavern and Tony’s offer bay-view dining.

Mariculture. The 2019 LCP Land Use Plan, certified by the Coastal Commission on February 6, 2019, supports mariculture for food production (Policy C-MAR-1) and requires oyster allotments and structures to avoid eelgrass beds (C-MAR-3). Parcels next to Tomales Bay need extra biological information for coastal permits (C-BIO-21). A buyer of an oyster or shellfish business is buying a land use entitlement plus state lease rights, and both must be confirmed.

Height and access. Policy C-DES-4 caps new construction on the Tomales Bay shoreline at 15 feet, lower than the 25-foot coastal default. LCP Unit II also lists specific Marshall APNs where lateral and vertical public access and shoulder parking are to be kept, and says access siting must consider nearby mariculture. Expect access conditions on any shoreline commercial permit.

Wastewater, lodging and coastal permits

Community wastewater system. Marshall is one of the few West Marin places with a shared system. According to the county, about 50 east-shore properties pump septic-tank effluent through pressure pipes to a community treatment unit and a leachfield on a donated six-acre parcel. Owners formed an assessment district for Phase 1 in 2007, more joined in 2011, and Phase 2 was finished in February 2016, for a total project cost of $3.21 million. The work followed shellfish contamination traced partly to failing septic systems, including a 1998 outbreak that sickened 171 people. Confirm whether a parcel is connected, its assessment and its share of operating costs. Parcels outside the system rely on individual septic, and even a replacement septic system needed a coastal permit at the 2024 Willis project.

Short-term rentals. Marshall is a capped STR township. The county’s STR administrative procedures list 28 initial licenses falling to 27. Permitted hotels, inns and B&Bs are exempt from STR licensing, which gives legally established lodging a scarcity premium.

Transfer tax, business tax and property tax

Marshall pays only the county transfer tax, $0.55 per $500 net of assumed liens, per the Marin County Recorder’s transfer tax sheet. Businesses need a county business license, renewed by July 31; lodging pays $15 per unit per year, and short stays need a transient occupancy tax certificate. A sale generally triggers Proposition 13 reassessment, and wastewater district assessments appear on the tax bill.

Due diligence that matters in Marshall

Start with our commercial due diligence checklist, then add:

Pull every coastal permit and condition, including public access and parking requirements.
Confirm the water source and its permit or capacity for commercial use.
Confirm connection to the community wastewater system or the condition of on-site septic.
For shellfish businesses, verify state lease status, health certifications and eelgrass constraints.
Check Caltrans requirements for driveways and parking on Highway 1.
Review sea level rise, pilings and shoreline protection condition.

Questions people ask

Who regulates commercial property in Marshall?

Marin County, through its coastal code and Local Coastal Program, with Caltrans and state agencies for the highway and bay.

How tall can a new building be on the shoreline?

The LCP caps new construction on the Tomales Bay shoreline at 15 feet.

Is there sewer service in Marshall?

About 50 east-shore properties are on a community wastewater system finished in 2016. Others use individual septic.

Does North Marin Water District serve Marshall?

Its West Marin factsheet does not list Marshall. Confirm each parcel’s water source.

How many STR licenses does Marshall have?

28 initially, falling to 27.

Is there a city transfer tax?

No. Only the county rate applies.

Does Diamond handle commercial property in Marshall?

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

Sources & notes

Note: LCP Unit II business names date from its earlier text and some may have changed. We did not open the East Shore plan, the 2019 LUP East Shore policies, the zoning map or the wastewater district’s current rules, and did not identify Marshall’s water provider.

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

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