commpropParticipantMay 25, 2011 at 12:51 pmPost count: 19
Was wondering if anybody can shed any light, I've read through various DSE documents with regards to difference zones e.g. Commercial Zone 1, 2, 3…however, what are the main differences between commercial vs industrial zones? Is one superior to the other when it comes to value (i.e. sales price)?
From my limited research and what I'm familiar/dealt with, I've found most commercial zone 1 properties the most expensive, I'm assuming these are shopping strip type shops or on main roads. Next seems commercial zone 3 – these are kind of representative in warehouse type commercial buildings. I've had a few relos own industrial 3 type properties, but to me, they are no different than commercial zone 3, any diff?
Will.Scott No MatesMemberMay 26, 2011 at 1:08 amPost count: 3721
Will, each class has a different use hence produces a different return & different value.
Warehouse has the lowest rental value however you get the largest area with a little for office/amenities. Ie you don’t pay much for storage.
Office space is generally better located to transport & cod. Rent & cost is greater.
Retail is the most desirable & has the highest costs.I am opinionated. Take me at face value, read between the lines.commpropParticipantMay 26, 2011 at 1:30 amPost count: 19Scott No Mates wrote:Will, each class has a different use hence produces a different return & different value. Warehouse has the lowest rental value however you get the largest area with a little for office/amenities. Ie you don't pay much for storage. Office space is generally better located to transport & cod. Rent & cost is greater. Retail is the most desirable & has the highest costs.
To be clearer, the reason I ask this is, a relative purchased a warehouse in a different subrub (but nearby – within a 3km radius) which is classfied as Industrial Zone 3 whereas mine is Commercial Zone 3. What is the main difference?
Reading through official documents by the DSE, it seems fairly similar. When we purchased the property, we were advised Commercial Zone 3 was better than Industrial Zone 3 generally speaking..(and quote, the agent used "if everything else was the same e.g. land size"…)
In practical reality sense, I don't think it makes much diff?
Will.APerryParticipantMay 26, 2011 at 1:56 amPost count: 833
If you are looking at the DSE maps you will find on each map a link through to the relevent planning scheme, in the palanning scheme are a list of allowable uses with and without permit and a list of banned uses. These are different for every zone. Industrial land is generally cheaper than Commefcially zoned land. Desirability is more a factor of demand than zone.Alistair Perry | Director Perry Finance | Australian Credit License: 387 307 | Level 13, 30 Collins Street, Melbourne VIC 3000 P: (03) 9639 5333 | E: firstname.lastname@example.org | www.perryfinance.comScott No MatesMemberMay 26, 2011 at 12:20 pmPost count: 3721
Will, as above, you’ll find that the industrial zoning will allow more manufacturing, noisy, recycling, wreckers, dirty, dusty uses compared to commercial zoning – quieter uses like storage, warehousing, wholesale, distribution Etc…….I am opinionated. Take me at face value, read between the lines.
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