Usually rentals of business space is more expensive. Fur real estate zoned commercially, the taxes are higher for the owners. As well, insurance for buildings zoned commercially pay higher insurance premiums. As well,there is a greater risk of businesses to go bankrupt, which leaves the landlord holding the bag.
So it might not be unreasonable to be asked to be charged more for such a location.
If you would only be using it for residential purposes, you might wish to either find another location, or at least ask what the issues are for the landlord and work from there. For instance, you may be able to sign a lease that stipulates you will not be running a business (if you never will at that location).
Of course, if you are interested in running a small business that does not have any foot traffic, or large invetory deliveries (which would tick off many residents), why not go residential? You cut a lot of overhead that way, and actually get a tax deduction