Strata and commercial property

It will depend upon the zoning of the property ie if it sits in a predominantly industrial area it is unlikely (like an industrial estate) but if it is in a mixed use zone (say in Alexandria) it may be possible. It is even less likely in a General or Heavy Industrial zoned area as industry can operate 24/7 so is not attractive to residential uses. A town planner is best placed to advise whether it is possible and what is the intent of the zoning. You may get creative and be able to get away with a one bedroom caretakers flat.

You will need to consider a few factors like BCA compliance (fire separation will be at the maximum level need for fire exits, noise separation including services etc)
 
If you are talking a two level retail (office)/residential property in a commercial strip then yes in general. It is fairly common in Melbourne suburban strips although it doesn't always add significant value.

Subject to fire regulations etc as well, as above talk to a town planner and/or council.
 
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