What planning checks should I do before listing a commercial property in Victoria?

What planning checks should I do before listing a commercial property in Victoria? Image of a real estate agent with clipboard, infront of a vacant shop front.

Welcome to Planning 101 for Commercial Real Estate Agents, a blog series designed to equip you with essential knowledge about how town planning impacts commercial properties in Victoria. Understanding planning isn’t just a technicality; it’s a strategic tool that helps you identify opportunities, manage risks, and close deals smoothly for your clients.

Further reading in this series:

You’ve landed a new commercial listing in Victoria – congratulations! You’re ready to hit the market analysis, and prepare your marketing campaign. But before the sign goes up, there’s a critical step that can save you headaches down the line and even strengthen your pitch: conducting preliminary planning checks.

Ignoring planning upfront can lead to surprises for potential buyers or tenants, causing delays or deal collapse. Being proactive demonstrates expertise and provides clarity.

Planning permission unknowns can kill commercial real estate deals

Commercial tenants and buyers need to know if a property is suitable for their specific business needs. Their key questions often relate to how they can legally use the space and make necessary changes. If you or the vendor/landlord can’t answer these questions quickly and confidently, uncertainty creeps in. This is especially true for:

  • Businesses needing a different use than the current one (e.g., a retail space wanting to become a gym).
  • Clients with specific fit-out requirements.
  • Businesses that need prominent signage.

Do your planning due diligence before listing your commercial property

Conducting key planning checks before you list, allows you to identify potential issues early and proactively arm yourself (and your marketing materials) with accurate information. This isn’t about getting permits, it is about understanding the property’s planning potential and limitations.

Key planning checks for commercial real estate agents:

Here are the essential planning points to investigate for commercial listing in Victoria:

  1. Verify the Zoning: What is the current zone of the property (e.g., Commercial 1 Zone, Industrial 3 Zone)? This is the most fundamental step, dictating the primary types of uses and development permitted. The Planning Scheme maps and associated zone will clearly state this.
  2. Identify Relevant Overlays: Does the property have any overlays (e.g., Heritage Overlay, Design and Development Overlay, Parking Overlay, Activity Centre Overlay)? Overlays add specific requirements or restrictions that layer on top of the zone rules and are crucial to understand.
  3. Check “Permitted Uses”: Based on the zoning and overlays, what uses are allowed ‘as of right’ (no planning permit needed), and which require a planning permit? This is vital for advising potential clients on whether their business type is permissible.
  4. Flag Common Permit Triggers: Be aware of typical activities that may require a permit in commercial settings:
    • Changing the Use (if the new use isn’t ‘as of right’).
    • Installing new Business Identification Signage (size, illumination, location restrictions apply).
    • Undertaking significant External Works or Building Alterations.
    • Seeking a Reduction in Car Parking Requirements.
    • Activities related to Liquor Licensing or Extended Trading Hours (the use and hours often need planning approval before a Liquor Licence is granted).
  5. Assess Permit History (if possible): Has the property had recent planning permits issued? Were there any conditions attached that might impact future use or development? Were there any retrospective permits issued (which could indicate past compliance issues)?

Understanding these points allows you to anticipate commercial property buyer/tenant questions and discuss the property’s planning context with confidence.

Need planning advice or due diligence check before listing a commercial property?

AS Planning specialises in providing clear, rapid preliminary planning checks for commercial properties in Victoria. We can quickly verify zoning, identify overlays, clarify permitted uses, and flag likely permit triggers, equipping you with the essential planning information you need before you list. Request a quote.