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Industrial zone vs. commercial zone: These are the differences

Where are you permitted to manufacture? A comparison between industrial and commercial zones clarifies questions regarding noise protection (LSV), zone conformity, and usage in Switzerland.

Written by
Dominic Frei
Published on
November 19, 2025

For manufacturing companies, choosing a location is much more than a question of square metre prices and motorway connections. It is an existential legal decision. A common scenario: a metalworking company rents a well-located commercial property, invests in machinery and exhaust air systems, only to have to restrict its operations six months later. The reason? Neighbourhood complaints about noise or odours.

 

The problem often lies in a misunderstanding of the terms ‘commercial zone’ and ‘industrial zone’. In Swiss building law, these zones are not synonymous, but strictly define how much ‘disturbance’ a business is allowed to cause. Anyone who makes the wrong choice here risks expensive retrofitting or, in the worst case, a ban on use.

 

 

The commercial zone: for ‘clean’ businesses

The commercial zone (often also referred to as a working zone) primarily serves businesses that cause no or only moderate nuisance to the surrounding area. The key phrase in Swiss planning law here is: moderately disruptive.

 

Residential use is often also permitted in these zones – either directly in the same building (manager's flat) or on the neighbouring property. This has direct consequences for your business. Classic examples include carpentry workshops, car dealerships with workshops and high-tech assembly plants. As long as the work takes place during the day and does not cause extreme emissions (noise, smoke, vibrations), the commercial zone is ideal. It is often more centrally located and offers better public transport connections for employees.

 

However, the catch lies in the details: as soon as you want to switch to shift work or introduce processes that also cause noise at night (e.g. 24-hour CNC milling), you will quickly reach legal limits in the commercial zone. Consideration for the residential needs of the surrounding area takes precedence here.

 

 

The industrial zone: a safe haven for production

The industrial zone is the planning law counterpart. It is reserved for businesses that cause significant disruption. That may sound negative, but it is a crucial protective mechanism for the manufacturing industry. In purely industrial zones, residential living is generally strictly prohibited (with a few exceptions for caretakers).

 

The absence of residents allows for freedoms that would be unthinkable elsewhere. Continuous shift work (24/7), intensive heavy goods traffic even at night, and higher noise and odour emissions are permitted here. Chemical production, heavy industry, large logistics centres and recycling plants find their legally secure place here.

 

The advantage of the industrial zone lies in its planning security. Since no residential development is allowed to move in, you do not run the risk of a newly built residential building in the neighbourhood suddenly jeopardising your operating licence – a phenomenon that often leads to conflicts as residential development moves into mixed-use areas.

 

 

Preserving the zones: noise sensitivity levels (ES)

To answer the question ‘Where can production take place?’ objectively, it helps to take a look at the Noise Abatement Ordinance (LSV). Switzerland is divided into different noise sensitivity levels (ES), which set strict limits in decibels.

  • ES II (residential zones): Very strict values apply here. Industry is virtually impossible here.

  • ES III (mixed/commercial zones): Moderately disruptive businesses are permitted here. The limits are higher, but night-time quiet is a critical issue.

  • ES IV (industrial zones): The highest tolerance values apply here. This is the zone for traditional industry.

Before renting a hall, you must check which ES level the property is assigned to. An ‘industrial look’ of the building does not automatically mean that it is legally located in a level IV zone. If the property is located in a level III zone, significantly stricter noise limits apply to your machines at the plot boundary.

 

 

Conflicts of use and zone conformity

Another aspect is misuse. In many cantons, strict attention is paid to ensuring that industrial zones are not depleted by misuse. A purely office building, a gym or a retail shop often has no place in a purely industrial zone and may not be granted a permit. The legislator wants to prevent scarce land for noisy businesses from being ‘wasted’ on quiet businesses.

 

 

Conclusion: the zoning plan is part of the business plan

The distinction between commercial and industrial zones is not a matter of semantics in building law, but an economic factor. A commercial zone often offers a better image and proximity to customers, but restricts production times and methods. An industrial zone offers less glamour, but the operational freedom that modern manufacturing requires.

 

Before signing a lease, you should not only inspect the building, but also consult the zoning plan and the associated building and zoning regulations (BZO) at the local council. Check whether your planned use (including potential expansion into shift operation) complies with the zoning regulations.