- The Central Business District (CBD) tends to be the oldest part of a city
- Most CBDs are located at the centre of the urban area
- Where cities are located on the coast, the CBD is more likely to be close to the port
- Features of the CBD include:
- Banks, retail and commercial offices
- Multi-storey development (vertical growth rather than horizontal growth due to lack of space)
- Land of high value
- Pedestrianised for high footfall
- Public transport hub
- Traffic restrictions on private vehicles
- Low residential population
- Main public buildings
Proximity to the CBD
- Proximity is a measure of how close a location is to the CBD
- Areas close to the CBD are:
- More accessible, which is key for customers and workers
- Often prestigious, which is important for business and finance
- Proximity to the CBD affects the type, intensity and diversity of economic activities in a location
Relationship Between Proximity to the CBD and Economic Activities
Factors |
Influence on economic activities |
Land value |
Land closer to the CBD is more expensive and there is less available. This leads to high-density developments and more profitable activities |
Accessibility |
Land closer to the CBD is usually more accessible. Transport links and infrastructure usually centre on the CBD, which makes the movement of goods and people easier |
Agglomeration |
Economic activities are concentrated around the CBD which creates [popover id="~NtEjCbPQlZSazHf" label="economies of scale] and enables business networks. These increase productivity |
Competition |
Competition for land in the CBD increases cost. It also increases pollution and congestion, which further increases cost |