What is a Retail Space?
A retail space in Australia refers to a designated area, either indoors or outdoors, where goods or services are sold directly to consumers. These spaces range from high-end flagship stores in urban centres to small local shops and outdoor markets. Retail spaces serve a variety of industries, including fashion, electronics, groceries, and specialty services, and are subject to zoning regulations that dictate permissible activities and structural requirements.
Retail spaces in Australia are classified based on location, size, and type of operation. Each type adheres to planning schemes specific to the state or territory, ensuring compatibility with surrounding land uses and community needs.
retail spaces
Applicable Zoning for Retail Spaces in Australia
Retail operations are regulated under local planning schemes and zoning laws. The zoning determines the type of retail activity allowed and the associated conditions. Below are the primary zones where retail spaces are typically permitted:
1. Common Zoning Categories
Commercial Zones (C1Z, B1Z)
Purpose: Accommodate a wide range of retail and service-based activities.
Typical Areas:City centres, suburban shopping districts, and retail strips.
Examples:
Mixed-use retail in Melbourne's Docklands precinct.
Industrial Zones (IN1Z, IN2Z)
Purpose: Limited retail activities supporting industrial operations, such as trade supply stores or factory outlets.
Typical Areas: Industrial estates and logistics hubs.
Examples:
Factory outlets like DFO Homebush in Sydney.
Residential Zones (R1Z, R2Z)
Purpose:Small-scale retail activities serving local residents, such as corner stores or home-based businesses.
Typical Areas: Suburban and rural residential areas.
Examples:
Local milk bars or bakeries within walking distance of suburban homes.
Special Use Zones (SUZ)
Purpose: Precincts dedicated to unique retail activities, such as airport retail hubs or entertainment districts.
Typical Areas: Specialised areas like transport hubs or tourist zones.
Examples:
Retail stores in Sydney Airport's terminal precinct.
2. Zoning Framework by State and Territory
Each state and territory has unique planning and zoning regulations affecting retail spaces. Below is a breakdown of zoning frameworks:
New South Wales (NSW): Governed by the Environmental Planning and Assessment Act 1979. Retail spaces are primarily allowed in Business Zones (B2 Local Centre, B3 Commercial Core, and B4 Mixed Use).
Example: Pitt Street Mall in Sydney CBD under B3 zoning.
Victoria (VIC): Under the Planning and Environment Act 1987, retail spaces are permitted in Commercial 1 Zones (C1Z) and Mixed Use Zones (MUZ).
Example: Bourke Street Mall in Melbourne’s Commercial Core.
Queensland (QLD): Planning Act 2016 designates Principal Centre Zones for large-scale retail and Neighbourhood Centre Zones for smaller operations.
Example:Queen Street Mall in Brisbane.
Western Australia (WA): The Planning and Development Act 2005 allows retail in City Centre, Commercial, and Mixed Use Zones.
Example: Perth’s Hay Street Mall.
South Australia (SA): Planning and Development Infrastructure Act 2016 includes Urban Activity and Suburban Main Street Zones for retail.
Example: Rundle Mall in Adelaide
Tasmania (TAS): Tasmanian Planning Scheme permits retail in General Business and Central Business Zones.
Example: Elizabeth Street Mall in Hobart.
Northern Territory (NT): Retail is permitted in Central and Local Centre Zones under the Planning Act 1999.
Example: Casuarina Square in Darwin.
Australian Capital Territory (ACT): Retail activities are governed by the Territory Plan, focusing on CZ1 Core Zones and CZ2 Local Centres.
Example:Canberra Centre in Civic.
Granular Breakdown of Retail Space Types
1. High-Street Retail
Description:Located along busy streets or urban centres, these stores cater to high foot traffic.
Features:
Large display windows.
Street-facing entrances.
Typically independent stores or flagship outlets.
Examples: Luxury boutiques along Collins Street, Melbourne.
2. Shopping Centres
Description: Fully furnished and equipped spaces leased with flexible terms.Enclosed spaces featuring multiple retailers under one roof, ranging from small centres to super-regional malls.
Features: Anchor tenants (e.g., supermarkets or department stores).
Food courts and entertainment zones.
Centralised parking.
Examples:Chadstone Shopping Centre in Melbourne.
3. Big-Box Retail
Description: Large standalone stores focusing on a single category, such as furniture, hardware, or electronics.
Features:Expansive floor areas.
Ample parking.
Located on major arterial roads or near industrial zones.
Examples:IKEA stores in Australia.
4. Strip Retail
Description: Description: Clusters of small retail space along suburban shopping strips.
Features: Street-level accessibility.
Community-focused atmosphere.
Examples: Newtown’s King Street in Sydney.
5. Pop-Up Retail
Description: Temporary retail setups designed for short-term promotions or seasonal sales.
Features: Flexible leases.
Modular or mobile setups.
Focused on experiential marketing.
Examples: Holiday markets or event-specific pop-ups in city squares.
6. Factory Outlets
Description: Retail space selling discounted or surplus goods directly from manufacturers.
Features: Large warehouses or shopping centres.
Focus on affordability.
Examples: Harbour Town in Gold Coast.
7. Neighbourhood Retail
Description: Description: Small-scale stores catering to local communities, often within residential zones.
Features: Convenience-focused product range.
Close to public transport or pedestrian pathways.
Examples: Corner stores and bakeries in suburban Melbourne.
8. Specialty Retail
Description:Niche-focused stores catering to specific markets, such as hobbies, luxury items, or ethnic foods.
Features: Unique products or services.
Often located in high-traffic areas or tourist zones.
9. Market Retail
Description: Open-air or covered spaces where vendors sell fresh produce, crafts, and unique goods.
Features: Stalls with flexible layouts.
Vibrant and community-oriented environment.
Examples: Queen Victoria Market in Melbourne.
Examples: Gourmet food stores in Adelaide Central Market.
Key Considerations for Retail Spaces
1. Regulatory Compliance
Accessibility: Compliance with the Disability Discrimination Act 1992.
Safety: Adherence to fire safety and health regulations.
Signage: Restrictions on size, illumination, and location of signs under local council laws.
2. Economic Considerations
Retail rents vary based on location, foot traffic, and zoning.
Additional costs for marketing levies in shopping centres.
3. Design and Customer Experience
Layouts optimised for traffic flow and visibility.
Integration of sustainability features, such as energy-efficient lighting.
4. Technology and Innovation
Adoption of e-commerce integrations for omnichannel retailing.