Commercial Real Estate in San Rafael: Downtown Form-Based Code, Francisco Boulevard and Office Districts

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

San Rafael is Marin’s county seat and its largest commercial market. Its business property sits in a 265-acre downtown around Fourth Street, along the Francisco Boulevard corridors beside Highway 101 and the Canal, in office parks to the north, and in neighborhood centers. The city regulates zoning under Title 14 of its municipal code, but downtown follows a separate form-based code. Confirm the district and any overlay for each parcel with San Rafael Community Development before relying on this page.

Who controls the parcel

Inside city limits, the City of San Rafael decides land use under Title 14. Several neighborhoods with San Rafael mailing addresses are unincorporated, including Santa Venetia, Lucas Valley and parts of Los Ranchitos. Those parcels follow Marin County’s Title 22 instead, covered in our Marin County commercial guide. Check the assessor parcel record before assuming the city has jurisdiction. The city transfer tax, business license and inspection rules described below apply only inside the limits.

San Rafael zoning for commercial, industrial and mixed use

Chapter 14.05 sets out seven commercial and office districts. Chapter 14.06 adds four industrial districts, and a Marine district covers waterfront uses.

District	Intended uses	Notes
GC General Commercial	Shopping centers and retail on freeway or arterial access	36 ft. Housing by administrative use permit, offices as a secondary use. 15% landscaping
NC Neighborhood Commercial	Everyday shopping inside neighborhoods	36 ft, or 30 ft for residential-only buildings. Office and housing only in mixed-use projects
O Office	Professional, medical and business offices in a landscaped setting	Multifamily permitted. 40% lot coverage, 25% landscaping, 20 ft front yard
C/O Commercial/Office	Retail, office, mixed use and cultural uses	More ground-floor office allowed than downtown. No landscaping minimum
R/O Residential/Office	Transition between downtown and homes	Multifamily permitted. Lower intensity than downtown
DMU Downtown Mixed Use	The 265-acre downtown center	Uses and standards come from the Downtown Precise Plan form-based code
FBWC Francisco Boulevard West Commercial	Regional specialty retail: auto sales, bulk retail, building materials	Master use permit for multi-tenant centers. Large-scale projects and assemblage encouraged
I, LI/O, CCI/O, LMU	Industrial, light industrial/office, core industrial and light industrial mixed use	Chapter 14.06
M Marine	Water-dependent and boating uses	Chapter 14.08

Under Table 14.05.020, gas stations need a conditional use permit in every commercial district. Car lots with more than five vehicles need a conditional use permit, and major auto repair needs a zoning administrator use permit. Food service under 1,000 square feet is generally permitted by right, while bars, fast food and high-volume restaurants usually need a use permit. San Rafael’s table uses four permit levels: by right, administrative, zoning administrator and Planning Commission. Ask which one a proposed use falls under before you sign a lease.

Downtown, Fourth Street and Francisco Boulevard West

Downtown Precise Plan. The city approved General Plan 2040 and the Downtown Precise Plan on August 2, 2021, according to the state CEQA notice of determination. The plan is implemented through a form-based zoning code adopted at the same time. The city’s Downtown Precise Plan page explains that this code, Chapter 9 of the plan, serves as downtown’s zoning and replaces many Title 14 provisions. It regulates building form, size and frontage design with graphics rather than relying mainly on use lists. Within DMU, read the form-based code standards for the specific lot instead of the Chapter 14.05 tables.

Fourth Street west of D Street. Chapter 14.05 keeps clinics, labs, medical and general offices and schools off the street-facing ground floor here. They must use the rear ground level or upper floors, so a storefront purchase should assume a retail or restaurant tenant.

Francisco Boulevard West. FBWC is the city’s district for region-serving retail. New uses must meet criteria such as high tax revenue, large scale or a regional market base, and existing interim uses cannot expand to new sites. This makes the corridor better suited to auto dealers, building supply and large-format retailers than to small service tenants.

Height, hotels, cannabis and overlays

Height and FAR. Most commercial districts cap height at 36 feet, with exceptions under Chapter 14.24. Hotels may reach four stories and 54 feet, plus a 12-foot bonus through design review. FAR is set by Section 14.16.150 rather than the district table. Downtown heights follow the General Plan’s downtown height map.

Overlays. Title 14 adds a Hillside overlay, a Wetland overlay, an Eichler and Alliance Homes overlay, and a Canalfront Review overlay for sites along the San Rafael Canal. Canal and bayfront parcels may need both overlay review and flood hazard review under Title 18.

Cannabis. The use table permits cannabis testing and delivery in certain districts, subject to the city’s cannabis business chapter. The city also levies a separate cannabis industry tax under Chapter 3.40.

Lodging. Hotels need a use permit in the districts that allow them. San Rafael collects a transient occupancy tax under Chapter 3.20. Hotels with six or more rooms also fall under the city’s periodic housing inspection program.

Transfer tax, business tax and property tax

San Rafael is the one Marin city the County Recorder’s transfer tax sheet lists with its own added tax. The county charges $0.55 per $500, figured without assumed liens. The city’s Chapter 3.22, adopted in 1990, adds $2 per $1,000 of consideration. The city tax counts all liens and encumbrances the property carries at transfer, so on a leveraged commercial sale it is figured on the full price.

Every business in the city needs a license under the business license tax chapter. Lessors of commercial space should confirm whether their rental income is taxable there. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in San Rafael

Start with our commercial due diligence checklist, then add:

Confirm city versus county jurisdiction, then the base district and any -H, -WO or -C overlay.
In DMU, pull the form-based code standards for the specific frontage and height area.
On Fourth Street west of D Street, confirm the ground-floor use restriction before marketing to office or medical tenants.
Identify the permit level for the intended use, since an administrative permit and a Planning Commission permit take very different amounts of time.
Budget the city transfer tax on full consideration, in addition to the county tax.
For canal or bayfront sites, review flood hazard rules and sea level rise exposure.
For mixed-use buildings with three or more apartments, add the city’s rental inspection, just cause and mediation rules, covered in our multifamily guide.

Questions people ask

Does San Rafael have its own transfer tax?

Yes. It charges $2 per $1,000 of consideration, including assumed liens, on top of the county’s $0.55 per $500. It is the only Marin city the Recorder lists with an added tax.

What zoning applies in downtown San Rafael?

The Downtown Mixed Use district, whose rules come from the form-based code adopted with the Downtown Precise Plan in 2021, not from the Chapter 14.05 tables.

Can I lease a Fourth Street storefront to a medical office?

West of D Street, medical and general office uses must use the rear ground level or upper floors. The street frontage is reserved for more active uses.

Where can a car dealership locate?

Francisco Boulevard West Commercial is designed for auto sales and other regional retail. Lots with more than five vehicles need a conditional use permit in any commercial district.

How tall can a hotel be?

Up to four stories and 54 feet in the commercial districts, with a 12-foot bonus available through design review.

Can I add housing to a commercial property?

Often. Multifamily is permitted in O and R/O and allowed by administrative use permit in GC, NC, C/O and FBWC. The minimum is 1,000 square feet of lot area per unit, or 1,800 in NC.

Does Diamond handle commercial property in San Rafael?

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

Sources & notes

San Rafael Municipal Code Title 14, Zoning (GoCodebook, October 2026 edition)
SRMC Chapter 14.05, Commercial and Office Districts
SRMC Chapter 14.06, Industrial Districts and overlay chapters 14.12 and 14.15
City of San Rafael, Downtown Precise Plan
CEQAnet, General Plan 2040 and Downtown Precise Plan notice of determination, SCH 2019039167
SRMC Chapter 3.22, Real Property Transfer Tax and Chapter 3.20, Transient Occupancy Tax
SRMC Chapter 10.04, Business License Tax and Chapter 10.96, Cannabis Business
Marin County Recorder, transfer tax

Note: We did not read the industrial district text, the form-based code itself, the TOT rate or business license tax rates. The use table’s column layout was hard to read in the copy we used, so confirm specific use permissions with the city.

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

Inquire about a listing or to schedule a meeting

Matthew Martinez

Your inquiry is processed through our iHomefinder service. Review the form’s contact choices before submitting. Privacy Policy · Terms of Use.