Commercial Real Estate in Olema: Coastal Village Zoning, Lodging and Coastal Permits

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

Olema is a tiny crossroads village where Highway 1 meets Sir Francis Drake Boulevard, at the edge of Point Reyes National Seashore. Its commercial property is a handful of inns, restaurants, a campground and RV park, a store and offices along the highway, with ranchland and federal parkland around them. Everything is in the Coastal Zone, so every change of use or building project runs through Marin County’s coastal code and, often, the Coastal Commission. Confirm zoning and permit history for any parcel with the Marin County Community Development Agency.

Who controls the parcel

Olema is unincorporated. Marin County regulates private land under its coastal zoning code, Title 20, and its Local Coastal Program. The 2019 certified Land Use Plan has a separate Olema section among its community-specific policies. It also has three Olema maps: a land use policy map (Map 19d), a historic area map (Map 23c) and a categorical exclusion area map (Map 27d). Much of the land around the village is federal. The county notes that residents on National Seashore and Golden Gate National Recreation Area land are not subject to the LCP, so parkland leases follow federal rules instead. See our Marin County commercial guide for county-wide rules.

Olema zoning for commercial, agricultural and mixed use

A 2003 county permit for a property near Highway 1 and Sir Francis Drake shows the village parcels’ zoning as C-VCR. That permit approved four added habitable units on a 0.80-acre lot beside Olema Creek. The uses below come from Chapter 20.62, as amended by Ordinance 3791 in 2023.

Coastal district	Intended uses	Business uses and permits
C-VCR Village Commercial/Residential	The village center, mixing services for residents and visitors	Restaurants up to 40 patrons, general retail, groceries, offices, personal services and B&Bs of 3 rooms or fewer permitted. Larger restaurants, bars, hotels and motels by use permit
C-ARP Agricultural Residential Planned	Farmland near the village, with homes clustered	Farm stands under 500 sq ft and processing under 5,000 sq ft on C-ARP-10 to -60 lots. B&B of 3 rooms or fewer permitted
C-APZ Agricultural Production Zone	Commercial ranching	Farm stands and processing within size limits. Larger operations by use permit. Ag worker housing up to 12 units or 36 beds
C-RSP, C-R2, C-RMP residential	Homes near the village	B&B of 3 rooms or fewer permitted, 4 or 5 by use permit

Uses not listed in a district’s table are not allowed.

The village core and visitor-serving uses

Village commercial core. The 2015 to 2016 LCP amendments added a proposed Village Commercial Core Area map for Olema (Map 30c). The county’s 2016 FAQ on Policy C-PK-3 explains the goal: inside the core, commercial and visitor uses get priority over homes. The code now puts this into effect. In the C-VCR core, housing must be on upper floors or on lower floors away from the road. Ground-floor, road-facing housing needs a finding that it keeps the village’s commercial character. Outside the core, housing is a principal permitted use. Existing legal homes may stay.

Lodging. Hotels and motels need a use permit in C-VCR, while B&Bs of three rooms or fewer are permitted. Commercial lodging and campgrounds are exempt from the county’s short-term rental ordinance. Ordinary home rentals in the Olema township, by contrast, are capped at just 3 licenses, so a permitted inn holds far more value than a house that would need an STR license.

Creek and wetland work. Olema Creek and its wetlands run through the village. In 2007, the state Department of Fish and Game filed corrective actions at the Olema RV Resort for unpermitted stream diversion, creek disturbance and wetland fill. Expect close review of any grading, drainage or expansion near the creek.

Coastal permits and appeals

Most development, and many changes of use, need a Coastal Development Permit under Chapter 20.68. Under Chapter 20.62, a decision on a principal permitted use can be appealed to the Coastal Commission only in mapped geographic appeal areas. Decisions on "permitted" uses can be appealed, and for use-permit uses the coastal permit decision can be appealed. Olema has a mapped categorical exclusion area in the LUP. Ask the county whether a given project falls inside it, since that can remove the need for a coastal permit for some work. The county’s 2025 LCP housing amendments list Olema among the affected coastal communities. They would update multi-unit housing and ADU rules and still need Board of Supervisors and Coastal Commission approval.

Transfer tax, business tax and property tax

Only the county transfer tax applies: $0.55 per $500, figured without assumed liens, per the Recorder’s sheet. Businesses in unincorporated Marin need a county business license, renewed each year by July 31. Lodging and rentals are billed per unit. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Olema

Start with our commercial due diligence checklist, then add:

Confirm the coastal district, whether the parcel is inside the proposed village core, and whether it sits in the historic area or a categorical exclusion area.
Pull the Coastal Development Permit history, especially for lodging, campground or restaurant seat counts.
Check whether the parcel borders National Park Service land, and whether any part of the operation relies on a federal permit or lease.
Review septic and water capacity for any added rooms or seats.
Look for creek setbacks, wetlands and floodplain on the site.
Confirm that lodging is permitted commercial lodging and not an STR needing one of the township’s three licenses.

Questions people ask

What zoning applies in Olema village?

Coastal C-VCR Village Commercial/Residential for the village center, with coastal agricultural and residential districts around it.

Can I open a restaurant?

A restaurant of up to 40 patrons is permitted in C-VCR. Larger restaurants or those with bars or entertainment need a use permit. A Coastal Development Permit is usually needed as well.

Can I add rooms to an inn?

Hotels and motels need a use permit in C-VCR, plus a coastal permit. B&Bs of three rooms or fewer are permitted.

How many short-term rentals are allowed in Olema?

The township cap is 3 licenses. Commercial lodging and campgrounds are exempt.

Can a county decision be appealed to the Coastal Commission?

Often. Decisions on "permitted" uses and coastal permits for use-permit projects can be appealed. Principal permitted uses can be appealed only in mapped appeal areas.

Does Diamond handle commercial property in Olema?

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

Sources & notes

Note: We could not open the text of the LUP’s Olema policies or the Olema maps. The 2003 permit lists a "C-RS" district that does not appear in the current code. Confirm the current zoning and core boundary with the county.

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

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