What is town planning, and how can it add capital to your commercial property?
by Mish Daniel | Free Information
In this article, we will teach you how to use town planning to add value to commercial property, what town planning is, the principles of town planning, why you should care about town planning, net lettable areas, council land zoning, and how Revolve Commercial can help.
Prefer to learn by listening? Check out our podcast episode with town planner Alex Steffan.
What is town planning?
Town planning is mostly what it sounds like but it is also more complicated than you might think: it’s the combination of proposals and projects within a government area and the rules and regulations that guide them.
With town planning, controlling both existing and proposed developments is essential. All developments must be centred around strategic planning and development control. Town planning is constantly changing and is affected by community needs, population growth, and policy changes.
Why should you care about town planning?
It helps cities grow
Good town planning will help grow a city’s population, thus leading more potential customers to your commercial properties.
It can prevent costly disasters
Everyone in Australia is acutely aware of the fact that natural disasters are a part of our lives here. That being said, town planning can help ensure that your commercial property is adequately protected if and when a natural disaster occurs, whether it be flood or fire. This will keep you and your tenants safe, as well as ensure there are no significant financial losses in the form of structural damage.
It improves quality of life
Having a good quality of life is the primary goal of every human being, and good town planning helps us get closer to this aim. For example, good town planning will lead to better infrastructure, reducing traffic in a city. In addition, quality of life is a factor many people consider when choosing where to live. Therefore a good quality of life in the area surrounding your commercial property would be a selling point and should lead to more income.
Now that we’ve covered some of the benefits of town planning, let’s look at some of the technical details.
Net lettable area
Net Lettable Area is a measurement of the floor area of a commercial building that a property owner can lease. Essentially it is the area of a building that can actually be used for commercial purposes. It, therefore, excludes areas such as common stairwells, toilets, lift lobbies, etc.
One final subject we’d like to explore today is the topic of land zoning rules.
Council land zoning
Both Brisbane and the Gold Coast use land zoning as a medium to designate sections of the local government area that are suitable for residential, industrial, and/or commercial developments. This land zoning allows the council to manage change in their area and ensure orderly and controlled growth. It also helps protect specific locations such as conservation areas.
So if you are planning to own or build your own commercial property, the zoning of this area determines what kind of business can be operated there, or what type of property can be built. Be sure to thoroughly inspect your local area’s zoning guide to make sure you understand exactly what you’re getting when purchasing or developing a commercial property.
How can we help?
Investing in commercial real estate can be highly profitable, but it can also be complicated and challenging without the help of a buyers’ agent. Revolve Commercial is a Brisbane-based buyers’ agent that specialises in commercial property. Although we are based in Brisbane, we have years of experience in buying commercial properties throughout the Gold Coast, Brisbane, and surrounding suburbs.
Revolve Commercial are the number one buyers’ agency for people who want to purchase commercial real estate. We make property investment easy and hassle-free because we give our clients a priceless foundation of knowledge from which they can build their portfolios.
Our main goal at Revolve Commercial is to simplify commercial property investment on both the Gold Coast and Brisbane so that you, the everyday Australian, can start earning passive income.