Commercial Real Estate in Millbrae: Station Area Plan, Downtown Specific Plan and SFO Rules

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

Millbrae’s commercial property centers on three places: the Millbrae Station area around the joint BART and Caltrain station near Highway 101, the Broadway and El Camino Real downtown, and a small industrial and service area. Almost everything here sits close to San Francisco International Airport, so airport compatibility rules apply on top of zoning. Confirm zoning, plan standards and airport review for each parcel with the City of Millbrae before relying on this page.

Who controls the parcel

Millbrae is an incorporated city, and Chapter 10.05 of its municipal code is the zoning ordinance. Two specific plans carry most commercial land:

Station area. The Millbrae Station Area Specific Plan governs the MSAPD district around the station, under Article XVII of the zoning chapter.
Downtown and El Camino Real. The Downtown and El Camino Real Specific Plan governs the DTECRSP district, under Article XI.

Inside those districts the plan documents, not the base zoning tables, set uses, height, floor area and parking. Confirm the jurisdiction of any parcel near the city’s edges, where neighboring cities or the County may control.

Millbrae zoning for commercial, industrial and mixed use

District	Intended uses	Notes
C Commercial (Art. X)	Retail, restaurants, offices, personal services	Bars and hospitals conditional. Housing flats by conditional use permit only. 40 ft, no FAR limit
DTECRSP Downtown and El Camino Real Specific Plan (Art. XI)	Mixed-use downtown near the station	The specific plan sets uses, height, FAR, setbacks and parking; conditional uses go to the Planning Commission
MSAPD Millbrae Station Area (Art. XVII)	Transit-oriented office, housing, retail and hotel	Governed by the Millbrae Station Area Specific Plan
I Industrial (Art. XII)	Light manufacturing and general warehousing by right	Heavy manufacturing and outdoor storage are conditional
-O Office combining (Art. IX)	Adds office uses	Can be combined with any other district
PD Planned Development (Art. XV)	Project-specific uses	Uses follow an approved conceptual development plan
PF Public Facilities, OS Open Space	Public and park uses	Airport consistency rules apply

The station area and downtown plans

Millbrae Station Area Specific Plan. The city began updating the station plan in 2014. Its Notice of Preparation described a 116-acre plan area at US 101, Millbrae Avenue and El Camino Real, served by BART and Caltrain. The environmental review studied about 1,750 housing units, 1,653,000 square feet of office, 275,000 square feet of retail and 360 hotel rooms, and it covered two transit-oriented development projects. Those are figures studied in 2014, not entitlements. Check the adopted plan and what has already been approved before assuming remaining capacity.

Downtown and El Camino Real Specific Plan. On December 1, 2022, the city approved its 2040 General Plan update together with a new Downtown and El Camino Real Specific Plan. That plan supports mixed-use development downtown near Millbrae Station. The Notice of Determination records that the city certified an EIR, adopted mitigation measures and a statement of overriding considerations, and made related zoning code amendments. Under Chapter 10.05, the plan sets parking, setbacks, heights and FAR in the district, and the Planning Commission approves conditional uses.

SFO airport rules, offices and industrial land

Airport compatibility. Article XVI of the zoning chapter requires projects to be consistent with the San Francisco International Airport land use compatibility plan. That can mean any of the following:

airport real estate disclosure notices
noise evaluation and mitigation
avigation easements
safety compatibility review
airspace protection review

The requirement is written into the R-2, R-3, C, DTECRSP and industrial districts as well as the station area. For tall buildings, hotels and anything with residential units, airport review can shape height and design as much as zoning.

Commercial district. In the C district, buildings may reach 40 feet. The Planning Commission can approve extra height if total building volume stays within what the 40-foot limit would allow, and any other excess needs a variance. There is no FAR cap. Retail, restaurants, offices and personal services are allowed, while bars and hospitals need a conditional use permit. Residential flats in a commercial building also need a conditional use permit.

Office combining district. The -O combining district lets office uses be added to any underlying district, so check the zoning map for an -O suffix before ruling out an office conversion.

Industrial. The I district permits light manufacturing and general warehousing, with heavy manufacturing and outdoor storage by conditional use permit.

Density bonus. Mixed-use projects of five or more housing units can use state density bonus law, which the zoning chapter incorporates.

Transfer tax, business tax and property tax

The San Mateo County Assessor-County Clerk-Recorder collects documentary transfer tax at recording at 55 cents per $500. The County’s page names only the City of San Mateo as adding a city conveyance tax; we found no Millbrae transfer tax, but confirm with escrow. A change of ownership generally triggers Proposition 13 reassessment. We did not verify Millbrae’s business license tax or hotel tax rates.

Due diligence that matters in Millbrae

Start with our commercial due diligence checklist, then add:

Identify whether the parcel is in C, DTECRSP, MSAPD, I or a PD, and get the governing specific plan standards.
Run SFO compatibility early: noise contours, safety zones, airspace height limits and any avigation easement on title.
In the station area, confirm what the specific plan and prior project approvals already allocate.
For a building with flats in the C district, confirm the conditional use permit.
Check for an -O suffix if an office use is planned.
Review parking requirements, which the specific plans set within their districts.

Questions people ask

What plan governs downtown Millbrae?

The Downtown and El Camino Real Specific Plan, approved with the 2040 General Plan on December 1, 2022.

What plan covers the area around Millbrae Station?

The Millbrae Station Area Specific Plan, through the MSAPD zoning district.

Does the airport affect commercial projects?

Yes. Millbrae’s zoning requires consistency with the SFO land use compatibility plan, including noise, safety and airspace review and, where required, avigation easements.

How tall can a building be in the C district?

40 feet, with Planning Commission exceptions limited by building volume.

Can I add apartments to a commercial building?

In the C district, residential flats need a conditional use permit. In the specific plan districts, the plans set the rules.

Is there a Millbrae city transfer tax?

We found none; the County tax is 55 cents per $500. Confirm with escrow.

Does Diamond handle commercial property in Millbrae?

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

Sources & notes

Note: We did not review the specific plan documents themselves, the SFO compatibility plan maps, or Millbrae’s business license and hotel tax chapters. Station area buildout figures are 2014 study figures.

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

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