Commercial Real Estate in Muir Beach: One Inn, Coastal Rules and What Business Use Is Possible

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

Muir Beach is a tiny coastal community at the mouth of Redwood Creek, about six miles from San Francisco and surrounded by national and state parkland. It has essentially one commercial property, the Pelican Inn at Highway 1 and Pacific Way, and county coastal policy has long said no new commercial use is recommended there. So a commercial page for Muir Beach is really about three things: the inn and similar lodging, home-based businesses, and the rules that govern any change. Confirm zoning and coastal permit history for any parcel with the Marin County Community Development Agency.

Who controls the parcel

Muir Beach is unincorporated and entirely in the Coastal Zone. 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 Muir Beach Community Plan of 1978, and the 2019 certified LCP Land Use Plan has a Muir Beach section with its own land use and categorical exclusion maps.

The Muir Beach Community Services District provides water, fire protection, roads and recreation, and dates its establishing declaration to 1958. It serves more than 305 residents with a small paid staff and community volunteers. Marin LAFCo’s fire services study (August 2026 draft) lists the Muir Beach Volunteer Fire Department as a volunteer provider outside LAFCo oversight, and the CSD as a Marin Wildfire Prevention Authority member.

Much of the land around the village is federal: the county’s LCP Unit I notes that Big Beach is part of the Golden Gate National Recreation Area, and the Muir Beach Overlook to the north is federally owned. Those lands are not available for private commercial use.

Muir Beach zoning for commercial and business use

The LCP describes Muir Beach as essentially built out, with growth limited by the surrounding parklands. Private parcels are mostly coastal residential. A 2025 county approval at APN 199-221-21 shows C-RA-B1 zoning, and a pending permit at 20 Sunset Way shows C-RA:B-2 under a C-SF5 plan designation.

The Pelican Inn and visitor lodging

The only commercial use. LCP Unit I states that the Pelican Inn, at Highway 1 and Pacific Way, is Muir Beach’s only commercial use and that no future commercial use is recommended. A buyer of the inn should treat its lodging, restaurant and bar rights as legal entitlements to protect, not expand. Any intensification would need a coastal permit, and the policy history weighs against it.

Water quality condition. The same document records that the inn’s approval required water quality monitoring to see whether septic effluent reached Redwood Creek, which supports steelhead and silver salmon. Expect wastewater and creek protection to be central to any due diligence on the property.

Visitor pressure. The LCP counted roughly 375,000 visitors to Big Beach and the overlook in 1978. Beach parking and traffic on Pacific Way are a standing constraint on any business serving visitors.

Short-term rentals, water and coastal permits

STR cap. Muir Beach is one of the county’s capped STR townships. The county’s STR administrative procedures list 20 initial licenses falling to 19. Licenses come from a waitlist, and some ADUs built after January 1, 2020 cannot be licensed. Hotels, inns and B&Bs are exempt from STR licensing.

Water capacity. The CSD’s water system page reports 159 paying customers, two wells plus Redwood Creek watershed sources, a 200,000-gallon tank built in 2010 and an older 100,000-gallon redwood tank, and capacity of up to 45,000 gallons per day. LAFCo’s West Marin review recommended more storage and that the district annex the 0.6-acre parcel holding its wells. A water-intensive business is unlikely to be feasible.

Coastal permits. New development needs a Coastal Development Permit under Section 20.68.030 unless exempt. Even a 484-square-foot ADU at 20 Sunset Way required one.

Transfer tax, business tax and property tax

Muir Beach pays only the county transfer tax, $0.55 per $500 net of assumed liens, per the Marin County Recorder’s transfer tax sheet. Any business, including a home occupation or rental, needs a county business license, renewed by July 31; lodging and rentals pay $15 per unit per year, and short stays need a transient occupancy tax certificate. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Muir Beach

Start with our commercial due diligence checklist, then add:

• Pull every coastal permit and condition, especially for lodging or food service.
• Confirm water service and meter size with the Muir Beach CSD.
• Get septic permits and any Redwood Creek monitoring records from county Environmental Health.
• For rental income, confirm which STR licenses exist and whether they renew.
• Check federal parkland boundaries, easements and access along Pacific Way.
• Review wildfire exposure and insurance availability.

Questions people ask

Sources & notes

1. Marin County Coastal Zoning Code Ch. 20.62
2. Marin County LCP Land Use Plan Unit I (amended through 2010)
3. Marin County, Community and Area Plans
4. Marin County permits: P5846 (APN 199-221-21), P5997 (20 Sunset Way)
5. Muir Beach CSD: home, water system
6. Marin LAFCo: West Marin MSR, March 2022 draft, Fire Services Study, Aug. 2026 draft
7. Marin County STR administrative procedures, Feb. 2025
8. Marin County Recorder, transfer tax and business license

Note: LCP Unit I statements date from its original 1979–80 text. We did not open the 1978 community plan, the 2019 LUP Muir Beach policies, the zoning for the Pelican Inn parcel or the county home occupation standards.

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

Related: Muir Beach real estate guide · Multifamily property in Muir Beach · Commercial real estate services