Commercial Real Estate in Larkspur: Downtown SD, GD and TD Districts, C-1, C-2 and L-1 Zoning

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

Larkspur’s commercial property sits in three quite different places: the historic downtown along Magnolia Avenue, the office and retail cluster around Larkspur Landing near the ferry terminal, and smaller commercial and service sites along Sir Francis Drake Boulevard and Magnolia toward Corte Madera. Each has its own zoning rules, and the downtown districts were written to keep a two-story, walkable main street. Confirm zoning and any combining district for each parcel with the Larkspur Planning Department before you rely on this page.

Who controls the parcel

Inside city limits, the City of Larkspur regulates land use under Title 18 of the Larkspur Municipal Code. Nearby addresses that share a Larkspur mailing label, including Greenbrae and Kentfield, are partly or wholly unincorporated and follow Marin County’s Title 22 Development Code; see our Greenbrae, Kentfield and Marin County commercial guides. Check the assessor’s tax rate area or the city boundary map, not the postal city.

Special districts also matter. The Ross Valley Sanitary District requires private sewer lateral compliance at sale in its service area, which covers much of the Ross Valley including Larkspur. Confirm which sanitary agency serves a given parcel, since Larkspur Landing and the Greenbrae boardwalk area may differ.

Larkspur zoning for commercial, industrial and mixed use

The commercial chapters of Title 18 set out three downtown districts, two general commercial districts, an office district and one light industrial district.

District	Intended uses	Notes
SD Storefront Downtown (Ch. 18.41)	Historic, walkable core with retail, dining, offices, hotels and housing	25 ft or two stories. FAR 0.80. Zero front setback on Magnolia and Ward
GD Garden Downtown (Ch. 18.43)	Lower-intensity mix on larger, landscaped lots	25 ft or two stories. FAR 0.20 by right, up to 0.50 with a use permit
TD Transitional Downtown (Ch. 18.45)	Newer commercial and recreation uses with large surface parking	25 ft or two stories. FAR 0.30, up to 0.40 with a use permit
C-1 Restricted Commercial	Neighborhood retail and services, plus A-P uses	Business must be fully enclosed. No service or storage yards. Housing above the first floor
C-2 Commercial	Broader retail, offices, public uses	Retail list carried over from C-1
A-P Administrative and Professional (Ch. 18.40)	Offices	Its permitted uses also form the base of C-1
L-1 Light Industrial	Wholesale, warehousing, light manufacturing, auto repair, contractor yards	Uses must not create objectionable odor, dust, noise or vibration
Planned Development (Ch. 18.54, 18.55)	Site-specific plans	Terms set in each approval

Downtown Larkspur and Magnolia Avenue

The three downtown districts share a purpose clause: keep the downtown’s historic, human-scaled character and a mix of commercial, civic, cultural, residential and office uses. They differ mainly in intensity.

SD is the main street. According to Chapter 18.41, SD holds the greatest concentration of buildings that contribute to downtown’s historic district designation. On prime ground-floor spaces facing Magnolia Avenue, offices are limited to retail-service types such as real estate or travel agencies; other professional offices go elsewhere. Restaurants may have up to 10 outdoor seats by right. Bars, live or amplified entertainment, larger patios, medical offices and day care all need a use permit. Lots need at least 20 feet of street frontage, and projects of 5,000 square feet or more need a Planning Commission development plan.

GD and TD step down. GD is meant for a garden setting with more landscaping. Any FAR above 0.20 needs a use permit and a finding about parking and design, public amenities or affordable housing. TD covers the newer edge of downtown. It allows gas stations and auto repair by use permit, and projects between 0.31 and 0.40 FAR must show consistency with the Downtown Specific Plan or offer amenities or affordable housing.

Parking math. All three downtown districts use the same rates for new floor area: 2.6 spaces per 1,000 square feet for retail and service, 7.0 for restaurants, 2.5 for offices and 1 per hotel room. In SD, additions up to 0.80 FAR need no new parking if none is removed. When a building changes to a more intense use, restaurant expansion is figured at 4.4 per 1,000 square feet. Off-site parking needs a use permit. A restaurant buyer should run these numbers before writing an offer.

Housing upstairs. In every downtown district, second-floor apartments over first-floor commercial space do not count toward FAR. Converting existing units to commercial or office use needs a use permit, so do not assume an upstairs apartment can become an office.

Housing overlays, heritage review and other Larkspur rules

Housing Priority Overlay. Chapter 18.101, added by Ordinances 1078 and 1079 in 2024, maps a Housing Priority (HO) designation onto the sites in the city’s 2023–2031 Housing Element inventory. On the overlay sites around Larkspur Landing Circle, including 2000 Larkspur Landing Circle, housing is a by-right use at 25 to 35 units per acre when at least 20% of units serve lower-income households. Other listed sites range from about 15–25 to 50–60 units per acre. Projects that meet the city’s objective standards skip discretionary design review. The chapter sunsets December 15, 2030. For an office or retail owner on a listed site, this changes the land’s highest-value use.

Heritage preservation. Exterior changes in the downtown districts need design review, and parcels in the Heritage Preservation combining district also go to the Heritage Preservation Board under Chapter 18.19. Facade, sign and window changes on Magnolia Avenue should be scoped with staff first.

Cannabis. Title 18 includes Chapter 18.90, which prohibits medical marijuana dispensaries as an allowable use or home occupation. Do not underwrite a dispensary lease in Larkspur without written confirmation from the city.

Lodging. Hotels and inns are permitted in all three downtown districts. Larkspur’s transient occupancy tax chapter treats stays of 30 consecutive days or less as transient. We did not confirm the current rate, which is set in Section 3.12.030.

City fees. Title 3 includes commercial linkage fees (Chapter 3.34), fire protection impact fees (Chapter 3.36) and a traffic impact fee in Chapter 18.15. Ask for a fee estimate before buying a site for new floor area.

Transfer tax, business tax and property tax

The Marin County Recorder’s transfer tax sheet sets the county documentary transfer tax at $0.55 per $500 of value, net of assumed liens. It names only San Rafael as adding a city tax. Larkspur’s code still contains a documentary stamp tax on deeds conveying realty in the city when value exceeds $100, net of remaining liens. That section, last amended by Ordinance 1062 in 2022, says the amount is set by City Council resolution. We did not find the resolution, so confirm with escrow whether a Larkspur charge applies and how it is credited against the county tax.

Business licenses are covered in Title 5 of the code; confirm the tax class and amount with the city. A sale generally triggers Proposition 13 reassessment at the purchase price, so rebuild the expense line on the new assessed value.

Due diligence that matters in Larkspur

Start with our commercial due diligence checklist, then add:

Confirm the parcel is inside city limits, not unincorporated Greenbrae or Kentfield.
Identify the district (SD, GD, TD, C-1, C-2, A-P, L-1 or PD) and any Heritage Preservation or Housing Priority overlay.
Run downtown parking at the new-floor-area and intensified-use rates before pricing a restaurant or medical use.
Check FAR headroom: 0.80 in SD, and the use-permit thresholds in GD and TD.
In C-1, confirm the business can operate fully indoors, with no outdoor service or storage.
Ask for sewer lateral compliance requirements from the serving sanitary agency.
Request an estimate of linkage, fire and traffic impact fees for any expansion.

Questions people ask

How tall can a building be in downtown Larkspur?

In SD, GD and TD, 25 feet or two stories, whichever is less. The Planning Commission can grant exceptions after a hearing, on four findings.

Can an office lease a ground-floor space on Magnolia Avenue?

Only certain retail-service offices, such as real estate or travel agencies, in prime SD locations with direct access from Magnolia. Other professional offices belong in non-prime locations.

Does a restaurant need a use permit downtown?

Not for the restaurant itself, with up to 10 outdoor seats. More seats, a bar or live music need a use permit.

Is there industrial land in Larkspur?

Yes, a small amount in the L-1 Light Industrial district, which allows warehousing, contractor shops, auto repair, bakeries and small-scale custom manufacturing.

Can I build housing on a commercial site?

Often. Downtown districts permit multifamily, and second-floor units over commercial space are exempt from FAR. Housing Priority Overlay sites allow by-right housing at set densities.

Are cannabis dispensaries allowed?

Title 18 includes a chapter prohibiting medical marijuana dispensaries. Confirm current rules with the city before negotiating.

Does Larkspur have its own transfer tax?

Its code imposes a documentary stamp tax set by resolution, but the county’s sheet lists only San Rafael. Confirm with escrow.

Does Diamond handle commercial property in Larkspur?

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

Sources & notes

Larkspur Municipal Code Title 18, chapter index (GoCodebook, Oct. 2026)
Downtown districts: Ch. 18.41 SD, Ch. 18.43 GD, Ch. 18.45 TD
Larkspur Municipal Code: § 18.44.020 C-1, § 18.48.020 C-2, § 18.52.020 L-1
Ch. 18.101 Housing Priority Overlay Zone
Ch. 18.19 Heritage Preservation and Ch. 18.90 dispensary prohibition
Larkspur Title 3: § 3.20.020 documentary stamp tax, § 3.12.020 transient occupancy definitions
Marin County Recorder, transfer tax
Ross Valley Sanitary District, compliance

Note: We did not review the A-P chapter, the zoning map, the Downtown Specific Plan text, the TOT rate, the stamp tax resolution, the business license schedule or the cannabis chapter’s text beyond its title. Sewer service boundaries at Larkspur Landing were not confirmed.

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

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