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Explanation of zoning for retail
Zoning is a way of measuring retail premises.
Zoning is a standard method of measuring retail premises for valuation purposes. It is used by both public and private sector surveyors to calculate the value of retail premises. It recognises that the most valuable part of the premises is the front part nearest the window.
What are the zones?
Your shop or retail premises is divided into a number of zones. Each zone normally has a depth of 6.1 metres (20 feet). The front part, nearest the window, is zone A. Typically the next 6.1 metres becomes zone B, and the next is zone C. The zones will continue until the entire depth of the retail area is allocated to a zone. Anything after zone C is defined as the remainder.
How do we value zones?
Shops come in many different shapes and sizes. By splitting each shop into standard zones we can take account of these differences when we value them. We look at evidence of actual rents being paid in the area and break them down into a price per square metre for each zone. Each zone is generally considered to be worth half as much as the previous zone.