Zoning Types / Commercial Zoning

Commercial Zoning: What It Means and What It Allows

Commercial zoning is a land use district for businesses that sell goods or services to the public, such as stores, restaurants, offices, hotels and gas stations. It is usually marked with a C on a zoning map and is kept separate from residential and industrial districts.

Most cities have several commercial districts, often numbered C-1, C-2 and C-3, plus separate office districts marked O. Each city names and defines them differently, so the local zoning code is the final word for any property.

What is a commercial zone?

A commercial zone is an area where a city allows business activity. The zoning code lists which businesses can open there by right, which need a conditional use permit, and which are not allowed. It also sets building rules like height, setbacks and parking.

Commercial zones are usually along main roads, in downtowns and in shopping centers, where customers can reach them easily.

Types of commercial zoning

TypeCommon codesWhat it is for
Neighborhood commercialC-1, NCSmall shops and services near homes, like a coffee shop or barber
General commercialC-2, GCMost retail, restaurants, gas stations and services
Highway or regional commercialC-3, HC, RCCar-oriented uses like big box stores, hotels and car dealerships
OfficeO, OP, COOffice space, medical practices and professional services
Mixed-useMU, CMUShops or offices on the ground floor with homes above

What is retail zoning?

Retail zoning is commercial zoning that allows businesses to sell goods directly to customers, such as clothing stores, grocery stores and pharmacies. Most codes do not have a district called "retail." Retail is usually a use allowed in neighborhood and general commercial districts.

A small corner store may fit a neighborhood commercial zone, while a large shopping center usually needs general or regional commercial zoning with more parking.

Commercial zoning examples

Common businesses in commercial zones include restaurants, cafes, salons, banks, gyms, hotels, car washes, gas stations, pharmacies and professional offices. Uses with more noise or outdoor work, like an auto repair shop, may be allowed only in the most intense commercial district or only with a conditional use permit.

Neighborhood vs general commercial zoning

Neighborhood commercial districts allow smaller businesses that serve nearby residents and usually limit building size, hours and signs. General commercial districts allow a wider range of larger businesses and more traffic. If a business draws customers from across town, it usually belongs in general commercial.

Can you live in a commercial zone?

Sometimes. Many older codes do not allow homes in commercial districts, but a growing number allow apartments above shops or allow homes in mixed-use districts. An existing house on commercial land may also be allowed to stay as a nonconforming use. Check the local code before you buy.

How to check a property's commercial zoning

Find the property on the zoning map, note the district, and look up that district's permitted uses in the zoning code. You can search for your city's zoning map on ZoningPoint. For parking-heavy uses, the parking ratio calculator shows how many spaces a building may need.

Commercial land often borders residential zoning on one side and light industrial zoning on the other.

Commercial zoning FAQ

What is commercial zoning?

Commercial zoning is a district for businesses that serve the public, such as stores, restaurants, offices, hotels and gas stations. It is usually marked with a C on the zoning map.

What is the difference between commercial and retail zoning?

Retail is a type of commercial use. Most codes allow retail stores inside commercial districts rather than in a separate retail district.

What does C-1 zoning mean?

C-1 is usually the least intense commercial district, meant for small neighborhood shops and services. Higher numbers like C-2 and C-3 usually allow larger businesses.

Can you run a business from a home in a residential zone?

Often, yes, if it is a small home business that follows the local home occupation rules. A business with customers, employees or signs may need a commercial zone.