Commercial area, commercial district or commercial zone in a

city A city is a human settlement of a substantial size. The term "city" has different meanings around the world and in some places the settlement can be very small. Even where the term is limited to larger settlements, there is no universally agree ...

is an area, district, or neighborhoods primarily composed of commercial buildings, such as a

strip mall A strip mall, strip center, strip plaza or simply plaza is a type of shopping mall, shopping center common in North America and Australia where the stores are arranged in a row, with a footpath in front. Strip malls are typically developed as a ...

, office parks,

downtown ''Downtown'' is a term primarily used in American and Canadian English to refer to a city's sometimes commercial, cultural and often the historical, political, and geographic heart. It is often synonymous with its central business district ( ...

central business district A central business district (CBD) is the Commerce, commercial and business center of a city. It contains commercial space and offices, and in larger cities will often be described as a financial district. Geographically, it often coincides wit ...

, financial district, " Main Street", or shopping centers. Commercial activity within cities includes the buying and selling of goods and services in

retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholes ...

businesses,

wholesale Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...

buying and selling, financial establishments, and a wide variety of uses that are broadly classified as "business." While commercial activities typically take up a relatively small amount of land, they are extremely important to a community's

economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

. They provide

employment Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

, facilitate the circulation of money, and often serve many other roles important to the community, such as public gathering and cultural events. A commercial area is real estate intended for use by for-profit businesses, such as office complexes, shopping malls, service stations, bars and restaurants. It may be purchased outright by a developer for future projects or leased through a real estate broker. This type of property falls somewhere between residential and industrial property. Practically every incomer must grant permission to build a new office complex or other profit-making business, the city government must determine that the chosen area is indeed commercial area. If the zones which separate commercial, industrial, and residential area are clearly zoned for commercial use, the city will allow the sale to proceed for the stated use. If any part of the property extends into a residential or industrial zone, however, then the buyer must seek a 'variance', special permission to cross over a zone boundary. A commercial area can be held by real estate agents who treat it the same as residential areas. Signs advertising the availability and size of the real estate can be erected, and arrangements can be made to buy or lease smaller lots. Sellers may also agree to make improvements to the land, such as grading off uneven spots or clearing out unwanted trees. A professional developer may purchase huge swatches of this type of property simply to guarantee its availability for later projects.

Terminology

English

In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

, commercial districts that are primarily for shopping are called high streets. In North America, in smaller towns and cities there is often only one main commercial district, which is located on the main street. In larger cities and towns there may be multiple commercial districts, often with more specialized functions. If a city has one large central area of offices and professional buildings, this is called the

Central Business District A central business district (CBD) is the Commerce, commercial and business center of a city. It contains commercial space and offices, and in larger cities will often be described as a financial district. Geographically, it often coincides wit ...

or CBD (term used especially, but not exclusively, in Australian and

New Zealand English New Zealand English (NZE) is the variant of the English language spoken and written by most English-speaking New Zealanders. Its language code in ISO and Internet standards is en-NZ. It is the first language of the majority of the populati ...

), or

(

North American English North American English (NAmE) encompasses the English language as spoken in both the United States and Canada. Because of their related histories and cultures, plus the similarities between the pronunciations (accents), vocabulary, and grammar ...

with the exception of Liverpool, England, who also uniquely use the term 'downtown

. "CBD" and "downtown" usually refer to centrally located areas of a city and are of predominate importance within their city, which differentiates them from other commercial districts. The financial district of a city is the specific area of either a larger CBD or downtown or separate zone and would typically house a

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

or several

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

headquarters Headquarters (often referred to as HQ) notes the location where most or all of the important functions of an organization are coordinated. The term is used in a wide variety of situations, including private sector corporations, non-profits, mil ...

. Likewise,

city centre A city centre, also known as an urban core, is the Commerce, commercial, Culture, cultural and often the historical, Politics, political, and geographic heart of a city. The term "city centre" is primarily used in British English, and closely e ...

is sometimes used as a synonym for CBD or downtown, but often the geographical centre of a city not a commercial district. Often the centre of a city in older cities has many historic, institutional, or

cultural Culture ( ) is a concept that encompasses the social behavior, institutions, and Social norm, norms found in human societies, as well as the knowledge, beliefs, arts, laws, Social norm, customs, capabilities, Attitude (psychology), attitudes ...

areas.

Other languages

Most languages do not have a direct

cognate In historical linguistics, cognates or lexical cognates are sets of words that have been inherited in direct descent from an etymological ancestor in a common parent language. Because language change can have radical effects on both the s ...

for commercial district, but will have a related term such as the French ''quartier d'affaires'' ("business quarter"), or the Japanese '' shōtengai'' (literally, "commerce shop street").

History

The workplace grew up in tandem with the city, which by the late 19th century was often perceived as polluted, congested and riven by social and economic strife. Although the city continued its rise until the mid-20th century, the forces that would spell its decline had been gathering steam over many decades. Commuter rail, streetcars and eventually the automobile allowed a widening segment of residents to move out of city centers. While at first most people commuted back to industrial and commercial jobs downtown, eventually many employers followed suit, moving to suburban communities in search of educated workers, cheap land, fewer unions and a leafy suburban image. The now-familiar commercial landscape of office parks and corporate campuses was born.

Zoning laws

Cities often use zoning laws to prevent conflicts between residential homeowners and businesses. Land designated as a commercial area is rarely located in the middle of residential zones. City planners encourage businesses to congregate along busier streets and central downtown areas. This helps to keep traffic to these sites manageable. Some areas of the city may be designated for 'mixed usage', which means some commercial areas may be used for residential purposes. A quaint downtown shopping area with apartments would be an example of mixed usage. Commercial areas definition may include industrial usage as well, although zoning laws still regulate the level of industry permitted. Heavier industries often purchase property on the fringes of cities or in unincorporated areas. Some commercial zones in the city do allow for light industrial usage, usually smaller factories with minimal emissions and transportation needs. Some examples of commercial area buildings are: *

Arena An arena is a large enclosed venue, often circular or oval-shaped, designed to showcase theatre, Music, musical performances or Sport, sporting events. It comprises a large open space surrounded on most or all sides by tiered seating for specta ...

Auditorium An auditorium is a room built to enable an audience to hear and watch performances. For movie theaters, the number of auditoriums is expressed as the number of screens. Auditoriums can be found in entertainment venues, community halls, and t ...

Bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

Chain store A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate many retail markets, dining markets, and service categories in many p ...

* Gas station *

Grocery store A grocery store ( AE), grocery shop or grocer's shop ( BE) or simply grocery is a retail store that primarily retails a general range of food products, which may be fresh or packaged. In everyday US usage, however, "grocery store" is a synon ...

Hotel A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a re ...

Movie theater A movie theater (American English) or cinema (English in the Commonwealth of Nations, Commonwealth English), also known as a movie house, cinema hall, picture house, picture theater, the movies, the pictures, or simply theater, is a business ...

Office An office is a space where the employees of an organization perform Business administration, administrative Work (human activity), work in order to support and realize the various goals of the organization. The word "office" may also denote a po ...

Pharmacy Pharmacy is the science and practice of discovering, producing, preparing, dispensing, reviewing and monitoring medications, aiming to ensure the safe, effective, and affordable use of medication, medicines. It is a miscellaneous science as it ...

Restaurant A restaurant is an establishment that prepares and serves food and drinks to customers. Meals are generally served and eaten on the premises, but many restaurants also offer take-out and Delivery (commerce), food delivery services. Restaurants ...

* Shophouse *

Shopping mall A shopping mall (or simply mall) is a large indoor shopping center, usually Anchor tenant, anchored by department stores. The term ''mall'' originally meant pedestrian zone, a pedestrian promenade with shops along it, but in the late 1960s, i ...

* Car Dealer * Discount stores * Warehouse clubs

Different kinds of commercial areas

The Neighbourhood Commercial 1 (CN1) zone is intended for small sites in or near dense residential neighbourhoods. The zone encourages the provision of small-scale retail and service uses for nearby residential areas. Some uses which are not retail or service in nature are also allowed so a variety of uses may locate in existing buildings. Uses are restricted in size to promote a local orientation and to limit adverse impacts on nearby residential areas. Development is intended to be pedestrian-oriented and compatible with the scale of surrounding residential areas. Parking areas are restricted, since their appearance is generally out of character with the surrounding residential development and the desired orientation of the uses. The Neighbourhood Commercial 2 (CN2) zone is intended for small commercial sites and areas in or near less dense or developing residential neighbourhoods. The emphasis of the zone is on uses which will provide services for the nearby residential areas, and on other uses which are small-scale and have little impact. Uses are limited in intensity to promote their local orientation and to limit adverse impacts on nearby residential areas. Development is expected to be predominantly auto accommodating, except where the site is adjacent to a transit street or in a Pedestrian District. The development standards reflect that the site will generally be surrounded by more spread out residential development. The Office Commercial 1 (CO1) zone is used on small sites in or near residential areas or between residential and commercial areas. The zone is intended to be a low intensity office zone that allows for small-scale offices in or adjacent to residential neighbourhoods. The allowed uses are intended to serve nearby neighbourhoods and/or have few detrimental impacts on the neighbourhood. Development is intended to be of a scale and character similar to nearby residential development to promote compatibility with the surrounding area. Development should be oriented to pedestrians along transit streets and in Pedestrian Districts.

Leasing commercial areas

Leasing commercial office space is one of the largest expenses incurred by new and expanding businesses, so it is important to do your due diligence. Here are some tips for negotiating a commercial lease for your small business.

Lease agreement

Lease term and rent are your first negotiation points. It is generally recommended that small businesses negotiate one- to two-year leases with the option to renew. You will also want to factor in rent increases over the term and renewal options so you are not charged with an unexpected rent increase without warning. Consider working with a broker to help you negotiate with the landlord. It is also important to consult a knowledgeable real estate lawyer; they can often recommend the right choice for you and protect your interests as you negotiate your lease through the broker. In commercial leases the expiration date of the lease can be extremely harsh, but through trial and error courts in the United States have created exceptions to relieve some anxieties. Commercial tenants may now use an "honest mistake" or an "inadvertence" to disregard the timely renewal of their lease. The non-renewal of the lease can also now result in forfeiture of the property to the tenant.

References

External links

* {{DEFAULTSORT:Commercial Area Planning Urban studies and planning terminology