Hi All,
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?
Thanks.
Regards,
Will.
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.
Scott 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.Thanks Scott.
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?
Regards,
Will.
Hi Will,
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.
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…….
Commercial buildings are workplaces, offices, stores, or other distinctive structures utilized in and for businesses, or commerce. Industrial buildings are generally factory or warehouse buildings, where stuff is formed or stored for industries.
Industrial buildings offer you large space and open space, warehouse-like structures with factory floors where machinery works, supervisory office space, break rooms and bathrooms, and storage areas. equivalent general requirements for fire protection and life safety are usually required.
Each class has different uses and provides you a special return & different values within the coming future. So make your decision on the idea of your requirement and wish. I hope this info helps you to require decisions.
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The main difference is usually less about one being “better” and more about what the property is intended and permitted to be used for.
Commercial zoning generally focuses on customer-facing activities such as retail, offices, restaurants and services. Industrial zoning is more geared toward manufacturing, processing, warehousing, distribution and other operations that may generate more truck traffic, noise, storage or other impacts.
That’s also why a warehouse can sometimes look almost identical to a commercial building but still have a completely different zoning classification. The permitted uses, loading requirements, operating conditions, and surrounding land-use restrictions can be quite different.
As for property value, I wouldn’t assume Commercial Zone 1 will always be worth more than an industrial property. Location, permitted uses, accessibility, lot size, demand and development potential can have a much bigger impact on the actual value.
The exact distinction also depends heavily on the local zoning code, so I’d compare the permitted-use tables for the specific commercial and industrial classifications rather than judging them by the building alone.
For a more detailed breakdown of the distinction, including light vs. heavy industrial zoning, this is a useful reference:
https://www.zenadrone.com/what-is-industrial-zoning-light-vs-heavy-industrial-zones/
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