Commercial Real Estate in San Anselmo: C-1 to C-3 Districts, Ground-Floor Rules and Mixed Use
By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.
San Anselmo is a Ross Valley town whose commercial property is concentrated along San Anselmo Avenue downtown, around the Hub where Sir Francis Drake Boulevard meets Red Hill Avenue, and in smaller strips on Sir Francis Drake. Most buildings are older storefronts with offices or apartments above, plus a few shopping centers and service sites. The town’s zoning code is compact, and one land use table controls most decisions. Confirm the district for each parcel with San Anselmo Planning before relying on this page.
Who controls the parcel
Inside town limits, the Town of San Anselmo regulates land use under Title 10, Chapter 3. Sleepy Hollow and some nearby pockets carry San Anselmo addresses but are unincorporated Marin County, under Title 22. See our Marin County commercial guide. Sewer service in the town and in those unincorporated areas comes from the Ross Valley Sanitary District, which also serves Larkspur, Ross and Fairfax. Its lateral rules apply at sale regardless of zoning.
San Anselmo zoning for commercial, industrial and mixed use
The town has four commercial districts and no industrial district. The uses below come from Table 3A, last amended by Ordinance 2025-1190 in May 2025. The standards come from Table 4A.
| District | Typical uses | Standards and notes |
|---|---|---|
| C-1 | Retail, restaurants, offices, B&Bs by use permit | 1.0 FAR, or 1.25 for 8 to 10 unit housing projects off historic sites. 2 stories, 30 ft. Up to 20 units per acre |
| C-2 | Retail, department stores, restaurants with alcohol or entertainment, hotels and auto sales by use permit | 2.0 FAR. 2 stories, 30 ft. 20 units per acre. Ground-floor offices by use permit. Housing upper floors only |
| C-L | Retail, restaurants by use permit, vehicle repair and service stations by use permit | 2.0 FAR. 3 stories, 35 ft. 30 units per acre. Ground-floor offices by use permit |
| C-3 | The broadest district: retail, department stores, bars, hotels, fast food and auto uses by use permit | 2.0 FAR. 3 stories, 35 ft. 30 units per acre |
The C districts have no front or side yard requirements. Uses not listed in Table 3A are prohibited unless the Community Development Director finds them similar to a listed use. Fast food is allowed only in C-3, and only by use permit. Bars are allowed only in C-2 and C-3, also by use permit.
Downtown, the Hub and mixed use
Ground floors. In C-2 and C-L, ground-floor offices need a conditional use permit. This keeps street frontage for retail and restaurants. In C-2, housing must be on upper floors. Before buying a C-2 storefront to lease as an office, confirm the permit is realistic.
Mixed use. In C-1, C-L and C-3, mixed-use projects must devote at least half their floor area to housing to count as residential mixed use. In C-3 south of Ross Avenue, homes must be on upper floors or behind ground-floor commercial space. The exception is listed Housing Element sites, where projects with 20% lower-income units are allowed by right under state law. Projects of more than six units may need a use permit in some districts, unless they use the town’s objective design standards in Title 10, Chapter 20.
Housing opportunity overlay. Table 3A refers to a Residential Housing Opportunities (R-HO) overlay, but notes it is not yet on the zoning map. Ask the town whether a site has since been mapped.
Cannabis, lodging and other local rules
Cannabis. Article 18, adopted in 2017 and amended in 2020, bans all medicinal and non-medicinal cannabis facilities in every zone, along with commercial cultivation. Deliveries into town are limited to primary caregivers and licensed medicinal dispensaries located elsewhere. Those dispensaries must hold a San Anselmo business license. A cannabis tenant is not an option for a San Anselmo landlord.
Lodging. Hotels need a use permit in C-2 and C-3, and B&Bs need one in C-1, C-2 and C-3. Lodging is not allowed in C-L.
Business license. Businesses operating in town need a license under Title 6, Chapter 1.
Floodplain. For properties in FEMA Special Flood Hazard Areas, Table 4B points foundation work to the town’s flood rules in Title 7, Chapter 11. Downtown sits along San Anselmo Creek, so check flood zone status and insurance early.
Transfer tax, business tax and property tax
San Anselmo’s Title 8, Chapter 4, in place since November 1967, sets a town transfer tax of $0.275 per $500, excluding liens remaining on the property. The County Recorder administers it. The Recorder’s transfer tax sheet lists the county’s $0.55 per $500 and names only San Rafael with an added city tax. A town tax like this is usually credited against the county tax under state law, so confirm the split with escrow. A sale generally triggers Proposition 13 reassessment.
Due diligence that matters in San Anselmo
Start with our commercial due diligence checklist, then add:
- Confirm the C district, since the FAR difference between C-1 (1.0) and the others (2.0) is large.
- For any office tenant in C-2 or C-L, plan for a ground-floor use permit.
- Check whether the site is on the Housing Element list, which can open by-right housing.
- Order the Ross Valley Sanitary District lateral Certificate of Compliance, required at sale, for remodels over $75,000 and when adding a bathroom.
- Check flood zone status for downtown parcels near San Anselmo Creek.
- Confirm parking under Article 5 for any change of use.
Questions people ask
What are the commercial districts in San Anselmo?
C-1, C-2, C-L and C-3. There is no industrial district.
Can I lease a ground-floor space to an office?
In C-1 and C-3, offices are permitted. In C-2 and C-L, ground-floor offices need a conditional use permit.
Are cannabis dispensaries allowed?
No. All cannabis facilities are banned town-wide. Only limited medicinal deliveries from outside town are allowed.
How tall can a commercial building be?
Two stories and 30 feet in C-1 and C-2, and three stories and 35 feet in C-L and C-3.
Does San Anselmo have its own transfer tax?
The code sets $0.275 per $500, excluding liens. The county sheet lists only San Rafael, so confirm the split with escrow.
Where can a bar or fast-food restaurant open?
Bars are allowed by use permit in C-2 and C-3, and fast food only in C-3 by use permit.
What sewer paperwork does a sale need?
A Ross Valley Sanitary District Certificate of Compliance, after a video inspection and a pressure test witnessed by the district.
Does Diamond handle commercial property in San Anselmo?
Contact Matthew Martinez to discuss buying, selling or leasing commercial property in San Anselmo.
Sources & notes
- San Anselmo Municipal Code Title 10, Chapter 3, Zoning (GoCodebook, October 2026)
- Article 3, Land Use Regulations (Table 3A)
- Article 4, Development Standards (Table 4A)
- Article 18, Cannabis Regulations
- Title 8, Chapter 4, Real Property Transfer Taxes
- Title 6, Chapter 1, Business Licenses (chapter title only reviewed)
- Ross Valley Sanitary District, lateral compliance
- Marin County Recorder, transfer tax
Note: The code does not state district purposes for C-1 through C-3, so the "typical uses" column reflects Table 3A only. We did not review the zoning map, parking rules, any lodging tax or business license rates.
This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.
Related: San Anselmo real estate guide · Multifamily property in San Anselmo · Commercial real estate services
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