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What Is Commercial Zoning?

Zoning is the method used by states and territories to control the growth and development of the various areas in their states. Local councils enforce zoning per town and city planning. Zoning ensures that property retains its respective value and future appeal.

There are various types of zones; they are residential, commercial, industrial, agricultural, mixed-used, and public-use zones. Each state and territory have their own subcategories that typically delve into the type of activity and density allowed in each area. To that end, what is commercial zoning?

What You Need to Know About Commercial Zoning

Commercially zoned land and property is set aside for use by various types of businesses. Just because a particular area is zoned for commercial use doesn’t mean you have free reign to open any business there. Commercial zoning is broken down into more specific categories in each state or territory, and these categories place restrictions on various aspects of your business.

Potential commercial zoning restrictions:

  • Ability to change the façade of the building
  • Signage allowances
  • The internal fit-out of the building
  • Proximity to other buildings
  • Regulations on noise levels
  • Building heigh
  • Setback from the street

Commercial Zoning Subcategories by State

Because each state and territory are unique, individual zones and restrictions cater to these unique needs. Each state will have specific guidelines to follow for property development plans to be accepted by local councils. Archistar can make it easier to not only identify each commercial zone, regardless of state or territory, but also know the specific rules and restrictions that apply to every zone. It does this by pulling in planning rules from more than 25,000 local sources, allowing you to settle on development sites faster.

Commercial Zoning in New South Wales

  • B1 – Neighbourhood Centre
  • B2 – Local Centre
  • B3 – Commercial Core
  • B4 – Mixed-Use
  • B5 – Business Development
  • B6 – Enterprise Corridor
  • B7 – Business Park
  • B8 – Metropolitan Centre

Commercial Zoning in the Northern Territory

  • CB – Central Business
  • C – Commercial
  • SC – Service Commercial
  • TC – Tourist Commercial

Commercial Zoning in Tasmania

  • Local Business Zone
  • General Business Zone
  • Central Business Zone
  • Commercial Zone
  • Urban Mixed-Use Zone
  • Village Zone

Commercial Zoning in Victoria

  • Commercial 1 Zone
  • Commercial 2 Zone

*The commercial zones in Victoria were amended in 2013 to allow for more flexibility and commercial growth, to support a broader range of uses.

Commercial Zoning in Queensland

  • Neighbourhood Centre Zone
  • Local Centre Zone
  • Centre Zone
  • District Centre Zone
  • Major Centre Zone
  • Principal Centre Zone

Commercial Zoning in Western Australia

Each local council has its own planning scheme, and all commercial land is referred to as a general commercial zone.

Commercial Zoning in South Australia

  • Activity Centre Zones
  • Employment Zones

*The specifics of each zone differ from council to council across the state.

Commercial Zoning in the Australian Capital Territory

  • CZ1 – Major Centres Core Zone
  • CZ2 – Major Centres Business Zone
  • CZ3 – Major Centres Services Zone
  • CZ4 – Local Centres Zone
  • CZ5 – Mixed-Use Zone
  • CZ6 – Leisure and Accommodation Zone

As a property professional, investing in or developing commercially zoned property is likely to yield higher financial returns because the risk is low, there are tax benefits, and there is income stability because tenants sign longer leases. Use Archistar property software to find the correct commercial zone to get your project started. Archistar’s extensive zoning database is updated weekly. You can narrow your search down from thousands of properties to just a handful based on your specified zone, supported by the latest market data for the site and surrounding area.

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